September 22, 2010

ADDING TO OUR SHORT POSITION ON GENERAL MILLS $GIS

Adding to our short position on General Mills around $37.10. Earnings today were good and the company did a commendable job of managing its raw material cost. However, our short thesis is based on macro level pricing for grains. The thesis is intact as evidenced by spike in corn price today.

We will continue to fully hedge this position with $JJG.

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September 22, 2010

EXITING OUR LONG BROCADE $BRCD POSITION RIGHT HERE AT $6.32 ON IBM ACQUISITION CHATTER

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September 22, 2010

MORE ON ADOBE $ADBE

After our post, in the after hours trading, Adobe slightly moved up resulting in no fill at our price. The new price range for the first scale in entry is $26.50 to $26.25 with an eye towards an average entry price towards the lower end.

As expected, there are multiple downgrades this morning. Interestingly, the analysts who were recently upgrading at $33 on Apple decision to allow Flash are now downgrading at $27.

This is another example of the power of the ZYX Change Method. At the time of Apple news, we analyzed Adobe but it did not pass our screens. Now we have a buy signal from the method at 20% better price

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September 22, 2010