Welcome to Wednesday. Yesterday, we got out of a number of positions and still have some open. We exited SOLF out of the gate for an 11% gain on our last portion of that position, which led us to an overall gain close to 9%. We also exited DRYS for a gain of 3.5% as the stock went soaring before earnings. Finally, we got out of half of our week long position in China Sunergy (CSUN) for a 4% gain, while holding the other half.
(looks like coal is in China’s future…to the left)
To start the day we had a Short Sale open in Green Mountain Coffee Roasters (GMCR), a position in First Solar (FSLR), and a half position in CSUN. We were able to exit GMCR this morning on a limit cover for a 2% gain at 33.62. It was a long while to get that 2%, but we end in the green. CSUN is sitting down 4% for us right now after a large drop to finish yesterday. We have a 5% stop loss on this one at 4.55. We will be watching it closely. First Solar has bounced back from yesterday, and we are down just 0.5%. I expect both of these positions to rebound to close the week and still like them.
Let’s get settled into a new Midterm Trade in the Buy Portfolio…
Overnight Trade: Cardiome Pharmaceuticals Corp. (CRME)
Analysis: I do not tend to Overnight Trade companies that are under $5, so this makes this one risky for sure. I am providing this warning that the stock is volatile, trading at all-time lows, and it is below $5. If what happens that should happen with Cardiome’s earnings, however, this could be a very nice pickup. One of the first reasons that I was attracted to Cardiome was because the company was estimated to turn to a profit from one year ago. The company is estimated to an EPS of 0.38 vs. a loss at -0.01.
The company is moving to a profit due to the fact that their product Brinavess was approved for sale in the EU, Iceland, and Norway. The company is marketing the drug through Merck and is paid licensing fees. The company has announced that they received at least $30 million in an initial payment from Merck upon approval. This payment alone would…
