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NETGEAR (NTGR): WHAT TO DO NOW?

April 29, 2011

Netgear (NTGR) traded as high as up 26% today after blow out earnings. Netgear earned $0.57 beating estimates of $0.52. Revenues grew to $278.8 million compared to consensus of $260. million. For Q2, Netgear guides revenues of $270. million compared to consensus of $241. million. Netgear benefited from its product innovations. Particularly noteworthy new products are in the realm of cable gateways and network storage. Netgear introduced 20 new products in the last quarter. What to do now? Those holding the stock long may consider scaling out starting right here to mid $40s.

REACHLOCAL (RLOC) CONTINUES ITS INSANITY

April 28, 2011

ReachLocal (RLOC) continued its insanity today. This provided an opportunity to short another tranche of ReachLocal at a higher price. Here are excerpts from my article on Seeking Alpha: A Great Google Idea Once Again Leads to Investor Insanity ……It appears that bulls on ReachLocalReachLocal try to differentiate themselves by adding advertisement management systems and a suite of services. The problem is that there are a large number of competitors in the business and they all take a similar approach to differentiation. The situation is akin to putting lipstick on a pig and stating that this pig is different

ADDED TO REACHLOCAL (RLOC) POSITION

April 27, 2011

As per the prior post on ReachLocal (RLOC), added to the short position on exhaustion of the upspike. The average short price is now $24.65. For details, please refer to ZYX SHORT SELL CHANGE ALERTS. We will add to the position on exhaustion of any further upspikes in the Entry Zone as dictated by the ZYX Change Method.

REACHLOCAL (RLOC) RISE IS IRRATIONAL

April 27, 2011

ReachLocal (RLOC) is rising almost 30% on two pieces of news. First ReachLocal entered into a partnership with Google (GOOG) under which ReachLocal is now considered a global premier AdWords partner. Having managed distribution channels for several companies I know that adding a premier partner program to an existing partner program is not only a natural progression, but also common place in the industry. This is nothing special as bulls would like to believe. Google is likely to have tons of new premier partners in the future. The partnership of Google with ReachLocal is not

IROBOT CORPORATION (IRBT) EARNINGS ARE LIGHT

April 27, 2011

IRobot (IRBT) reported earnings last night. The projections are light and not commensurate with the recent run up in the stock. We are now short from an average price of $38.12 and we will add to our short position on exhaustion of any up spikes. ZYX SHORT SELL CHANGE ALERTS contains more details of the trade.

AGGRESIVELY SHORTING SILVER FUTURES

April 27, 2011

Aggressively short selling silver futures in the range of $49.30 to $51 on all up spikes.

PROTECT PROFITS ON YUM

April 26, 2011

We are short from $55.57. In three days the stock is at $52.46. This profit should be protected here by either taking a partial gain or putting a stop on partial quantity at $52.76. Stop on the remaining quantity is at $53.16

SIZZLE IN YUM BRANDS (YUM) IS OVERDONE

April 20, 2011

The sizzle in Yum Brands (YUM) is overdone. We are now short from $55.57. Enthusiasm on China is not justified based on a forward look. Buying Yum here is like driving looking only in the rear view mirror. The stock is up over $4.00 after the earnings report. More details are available in the ZYX SHORT SELL CHANGE ALERTS. I will add to my short position if and when all six screens of the ZYX Change Method are satisfied.