Not sure if "dead" is the most illustrative term.
I actually (!) made some money on XLA last week, from 5.05 to 5.48 but I was smacking my head for even getting back in, in the first place. For a puny profit, I lost opportunity cost on the OEX going to 650+ from 635, then the inevitable reverse (that was truly a "pump" move.) But I made some money on puts today and Friday..
I still like Xcelera and Mirror Image, but who can argue with a declining price? Look at London Pacific (LDP), even with their insurance income, their stock has been savaged to a extremely low P/E, as all "incubators" are getting the CMGI treatment. Xcelera has no huge debt like CMGI, and I prefer the low-tax strategy of the Caymans as opposed to "CMGI Stadium" by CEO ego-maniacs. I get the impression that the Vik brothers' Norwegian bruskness has made them enemies, and made them targets. Too bad.
But you have to view the situation soberly. Xcelera can make few moves in this environment that won't hurt the stock. People view "selling" as disloyal, but if you feel you can buy more later at a lower price (and not because of "layoffs" or falling sales) cash out, and wait.
Xcelera should have never been up at 200-300 last year (pre-split). I avoided CIEN for the same reason (Grin) but at least they had earnings. Though Xcelera has dropped low, the future of Mirror Image is growing so the stock certainly has more promise than the "layoff crowd" (YHOO, INTC, CSCO) for appreciation. People seem to think the Caymans meant "shady dealings" but look at BRCM. There is a case of manipulation beyond even a hint of the Viks' actions.
So..."smaller" rather than "dead". But def worth watching. |
