Akamai and Synaptics…Not That Different

In the comments yesterday, Brian commented that I was long Synpatics even though I knew what was coming. So true. What separates the amateurs – me, from the pro’s – self proclaimed :) – is their ability to flip quickly. I was smart enough to scale out of Synaptics as it rose to $60, but knowing that I knew that the componenet cycle would end like all others, rode a piece down and added more in the low 40’s. A self procalimed pro would have sold and shorted it.

At least I got Akamai right .

Akamai, for all it’s cacheing greatness is a commodity too and the target of major pricing pressures both from competition and it’s customers. That has finally caught up. Yesterday, the rumor was Apple was making noise about Akamai and the stock dropped into the 26’s really fast. I ‘twitted’ that I covered it into the news. I am happy with 10 points, especially fast ones.

I may do this shorting thing a little more when the situation is right.

Any new faves out there? –

The market is the best teacher and drug. As long as you stay in the game you will enjoy a lifetime of lessons.

3 comments

  1. bocagirl says:

    fave short is via FXP

    fave long is CPHD

    also dipped into DRYS yesterday in the 50’s

    thinking about MELI and will twitter about it when I’m done checking it out

  2. 2and20 says:

    I may do this shorting thing a little more

    welcome to the dark side!

    X (US Steel)…steel companies always get smashed in a recession.

    KMX (Carmax)…good luck to the second-hand car industry in a slowdown.

    SPLS (Staples)…if an when businesses start pulling back spending, bang goes Staples

    HRL (Hormel Foods)…consumer staples have been way overbid, trading almost at 52 week highs. They may outperform in a recession, but they won’t perform on an absolute basis. Higher input prices due to commodities, and lower consumer spending cannot be good for margins. Considering shorting HNZ (Heinz) on the same basis.

    All of these are both 1) good shorts in a slowdown/recession and 2) great entry levels, in that they haven’t already puked totally.

    yes I am short all of them already (all documented on my meagre little blog). I’m also having a close look at shorting Yum Brands (YUM) and Goldman, since earnings of the last few years will be nearly impossible for them to repeat now that ABS markets have kinda died.

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