CDXS Early bird gets the worm. RJET goes down, I get out.

CDXS was all the rage today.  I watched the volume come in from just a few thousand share pre-market.  (this averages 30k) over 5.3 mill traded today.   I bought at 2.30 right before the AM pre-market CC.  It traded down as low 2.15 shortly before CC began.  But gradually traded up.  I put a limit sell order at 2.65 and went to take a shower.   My order was hit and I was out for a .35 gain.  Turns out my sale was as the HOD Woot!  +.35 16% gain. 

If only I stopped there.  But decided to get cute. Bought again at 2.05 hoping 2.00 would hold and make another run to 2.25. Nope.  took the loss at 1.97.  so only .27 on the day or 11%.  +.5R.  

Take aways:

I'm not a day trader.  

The first trade my profit target was hit, and I'm fine with that profit.  The second, I tried to get too cute.   That being said, I limited my loss quickly and get out with a gain on the day. 

•  The CC was interesting as CDXS insinuated that the new deal was not part of Q2 earnings, which would be announced during August. The company inferred that it would raise guidance during the earnings CC.  Point being this is one to keep watching.
• 
  
• CDXS also said it was talking to other companies about similar deals.  However, it did not believe more than 1 or 2 a year was feasible given the size of the deals and the complexities.
• Big firm analysts asked questions Wells fargo and I believe Fidelity  watch for upgrades.

RJET:
Woke up to ews of a BOA and Merrill Downgrades.  I felt confident that the downgrades would ensure that the momentum it had built up would stop. Thus, I saw little reason to remain in this stock.

I decided to sell shortly after the open as my reason for the trade looked in doubt rather than wait for the stop to be hit.  I have seen a few of the Airlines fail breakouts reverse  and then break to the downside, I  wanted to avoid that result.

Entry: 11.08
Exit: 10.65
Loss. - 4.8%  .4 R.

Summary: I felt okay about my entry.  I missed a chance to exit at least a portion of the position when it got to 11.50  (too slow to log in) and it drifted down to breakout level.  That's not atypical so I did not exit hoping to see a delayed move.  Instead I got a downgrade and decided to manage my risk by exiting the trade.  Looking at the close it actually held up pretty well as the 10.50 acted as support.  Next few days will determine which way it decides to go.

More from the Sand Box EMES and RJET takes off

I've loved the stocks I'm calling the sand box this year.  SLCA, EMES, and of course HCLP.  Each of these stocks hit the 20MA and each them rallied.   I already own HCLP from under 38. So I  bought EMES today, which has  lead the group for most of the year before being slowed down by a secondary.

In any event bounced at the 20ma I picked up at 105.18 it closed at 107.49 so I've got a decent 2% gain to work with. My stop is at the day low.  When this stock moves it moves!

RJET:  This looks like an inverse H&S shoulder.  I liked the consolidation which has held up despite hard selling in the broader markets.  Today it put up a relatively big move for it.  On news of increased Q2 guidance.  RJET increases its earnings per share by 16% for the quarter and is increasing guidance on its operating margins.

 I like its prospects for follow through. In at 11.09 stop at 10.39.  It has a 2 year high of about 14. On forward earnings it has a PE of 8 which is much cheaper than many of its peers.  This may be enough to get some traction.

That being said I'm still curious as to its operating margin which is over 16% which is high compared to the industry to its profit margin which is 3% which is at the lower end of the companies in the group. I suspect that this is due to debt service.  The company has stated that it is replacing older planes with bigger one, which would explain the debt.