Riding The Gravy Train: selling RC for 188% gain, add HPSA

Riding The Gravy Train

Beating the market is fun and profitable. This is how we do it.

Monday, February 19, 2007

selling RC for 188% gain, add HPSA

We're selling a big winner for us, RDM Corporation on the TSX, ticker symbol RC, which was originally called in early October at $1.77 and updated a few times in the months since then. During that time it has risen 188% to the current level over $5.00

We've held since just over $1.00 so we know it well, and we feel this stock looks tired and expect it will not hold over the $5 level it currently enjoys. Coupling this belief with our expectation of a general market pull-back along with our stated goal of reducing holdings into the Spring, we sell RDM Corporation.

In apparent contradiction of our stated plans however, we add to another very successful call in the hopes of taking advantage of an event we expect in the very short term. Hammond Power Solutions Incorporated, ticker HPS-a on the TSX, is a company that we called at $4.15 on October 12 and has since traded to $7.99 for a paper gain of 93%. Each time it releases the latest numbers, the news is excellent and the stock rises. We feel the forthcoming numbers will be no different, thus we add to our holdings of Hammond Power Solutions.

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