I am selling 300 of 350 shares in the $46.60s to retain only a holding position in one of my favorite drillers in the energy patch, Atwood Oceanics (ATW). This reduces our stake from 1.4% of portfolio to 0.2%.
This is, once again, the EXACT same pattern we have detailed in the weekly overview and especially last Friday. You should recognize it by now - stock price broken below support, now drifting back upward to test previous support (now resistance). If it breaks through, fine - we'll miss a few points of upside. But I continue to marvel at how many charts both in the portfolio and my watch lists look like this. Which leads me to be anxious about both the stocks and the market as a whole. We'll cut back and re-assess when the chart either breaks down or strengthens. If we lucky and the market really tails off we might be able to pick this back up in the mid $30s where it has some old support levels. Not counting on it, but now that we are mostly out of it, I wouldn't mind. ;)
No change to fundamental story; on 2009 estimates of $5.61 (their year end is September 09, not December) the valuation is becoming absurd but this is not the first name I've written that about the past month. In 2002 nearly every stock had an absurd valuation.
Long Atwood Oceanics in fund; no personal position
Did you like this article?
's
