Wednesday, August 6, 2008

Position Update - TRLG

I took a small position in TRLG after-hours at $28.01 based on its earnings release. It beat EPS estimates by $0.07 ($0.39 vs. est $0.32) and showed almost 100% growth in the EPS. They also beat on sales and raised guidance. The chart isn't that special but the main thought here is that it has an amazing 47% of its float short according to Yahoo Finance. I am just hoping to catch a major short squeeze here. We'll see if it works out - I will be out quickly tonight or tomorrow if it doesn't follow-through to the upside right away.

As a note of caution, my momentum indicators have reached extreme numbers and have been very high for the past week. This means the market might be getting ahead of itself here. These readings can stay high for longer than you would think but what it means for me is that I am expecting a pullback soon, perhaps a sharp one. I definitely would NOT be chasing longs here. Now that the Nasdaq has broken out of its range, let's see if the 2350 can turn into support for the index. If it doesn't, then I will see this as a failed breakout and will be looking to short once again. Good luck tomorrow.

UPDATE - I am out at $26.50 with a bigger loss that I wanted. Wow, that was not good - reversed quickly after-hours. I guess I should have waited for the conference call. Forget I mentioned this one.

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