It's never a good sign when the COO resigns especially on a Friday after the market close. I'm surprised that BIDU didn't trade down, but it's likely that all of the influential traders were gone when the news hit. In addition, BIDU is technically on the verge of breaking down so it was only prudent to exit this position before the market clues in to the news.Its very possible that the conversion to the new software hasn't gone very well. Why else would the COO leave BIDU for 'personal reasons' and not a big new job? If the stock does breakdown, we'll look to re-enter the position around the 200ema of $350.Stay tuned for more news!
Tuesday, January 12, 2010
Trade: Sold Portion of Baidu
A little late reporting this sale, but we sold another 25% of the Baidu (BIDU) shares we owned in Growth and Hedged Growth portfolios on the opening Monday. The reason was posted over on my covester.com page. That account sold all of its shares in the after hours on Friday. To some extent i got lucky from reading of the COO resignation after the close and thinking it happened after hours. Guess it is better to be lucky then good as BIDU is down $17 since those trades were made. Losing the COO is still negative regardless of the timing.