As a day trading model looking for credible growth stories and company news to affect stock price, Management Access (managed by Douglas Estadt) sees a lot of new positions each month. Last month, the model gained many positions including Sprint Nextel Corp (NYSE: S) and Ctrip.com International Ltd (NASDAQ: CTRP). At the end of October, just before Estadt added S to the model, the company’s stock price fell from $4.85 (it’s closing price on October 22nd) to $4.19 (the closing price on October 28th). The reason for this more than 13 percent drop was likely due to its third quarter financial results which reported a net loss in operating revenues of $911 million, even after gaining a total of 644,000 wireless subscribers. Since then, S’s stock price has fallen further, closing at $3.94 on November 10th.
CTRP, a travel provider for visitors to the People’s Republic of China, also had a recently fallen stock price before being added to the Management Access model. On October 25th CTRP had a closing price of $52.00, which fell to $50.53 (closing price on October 27th) the day before it was added to the model. On November 2nd the company released their third quarter 2010 financial results which declared a 49 percent increase in net revenues over the same quarter of 2009. While this brought the stock price up to a closing price of $52.15 on November 2nd, the price has since fallen again, closing at $46.66 on November 10th.
The Rebound MF model managed by Rebound Trading Systems invests in ETFs after utilizing a momentum model and conducting a technical analysis. At the beginning of November, they added iShares S&P North Amer Technology-Software Idx Fd (IGV) to the model. IGV attempts to mirror the performance of the S&P North American Technology-Software index by investing at least 90 percent of its assets in securities on the index. On November 10th IGV was trading at a discount to NAV.
*All prices used in this post obtained from Yahoo! Finance.