Sun closed out the week at $5.63. I sold 25% of my original position at $5.70 and the final 25% at $5.85. With the first 50% sold at $5.50, my average exit price was $5.64.
Now, we wait. I'm hoping to buy back in after a sell-off. As always, I have no idea when that will happen but I would expect there to be a realization in the next few months that technology shares have re-inflated back to their bubble-top highs and that there are better bargains elsewhere. When the money shifts by selling tech and buying the current fad, Sun's price should drop back below $5. I hope to get shares below $4 again over the summer.
Sun closed the week out at $5.41 after dropping to $5.12 earlier in the week. The volatility continues apace. If you think it's all straight up from here, you have fishing bobbers for eyes. There will be a time to own Sun again, along with some of your other favorite tech names, but that time is after the inevitable pullback. It will come and it might be big.
As mentioned a couple of weeks ago in this space (Jan. 21st - scroll down), I sold half of my position at $5.50. I'm still holding out to sell the rest at a slightly higher price, which I could have done shortly afterward but didn't because I had my eyes on $6. After watching SUNW's chart, I'll be happy to get $5.70.
Do I intend to buy in again at a later date? You bet. It worked before and it'll probably work again. Now with the dollar slide continuing on schedule, the Fed preparing to raise rates, and P/E ratios hovering at levels not seen since the iridescent top of everyone's favorite bubble, booking our 60% three-and-a-half-month gain seems prudent.
