covering shorts in AXP +15% , SYX +34% (*) in 5 weeks , adding Hammond

We feel the markets are due for a rebound, perhaps via the U.S. Fed meddling with interest rates again, so we desire to lock-in quick gains we've enjoyed on the short side.


Per this blog on January 30th of this year we shorted AXP, American Express, and we now cover for a 15% gain.


So too on January 30th we shorted SYX, Systemax, which we now cover.

(*) However please note that today after the markets closed this company released what appears to be record earnings for 2007. Dark clouds still hang over the company and the sector it is in, in our opinion, however it was our plan to cover after the earnings announcement so we shall.

While we'd admittedly hoped for a drop tomorrow, it seems instead the stock will open significantly higher. In the after-market, the stock is currently at $11.75 which represents approximately a 14% profit on this short. Whether it be 34% (based on the closing price) or 14% (based on the after-market price), both are excellent gains for such a short-term holding and we're happy with the result on this position.


We additionally go long Hammond Power in Canada, restoring an additional position which we sold a month ago for a 34% gain after holding it for 10 months. Our existing open position is +141% since our October 2006 purchase, and we had also added a position in February '07 which we sold two weeks later for a 23% profit as per this blog.


Thus far in 2008 we've closed 7 positions for an average 26% gain on an average holding period of 7 months which implies an annualized gain of 44%.

Over the past 9 months, we've closed 20 positions for an average 32% gain.



We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the stocks we do, or mentioning them in this blog. If we hold existing positions we divulge the fact, otherwise we generally buy and sell as diarized here. This blog itself is merely a diarizing of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult your broker or investment advisor before making any investing decisions.

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