Friday, May 17, 2013

Took profits on Qihoo 360 (QIHU)

I rang the bell on QIHU ahead of Monday's earnings report. We gained better than 9% in a very short time.

Ian Woodward, HGSI Group Mentor, says high growth stocks, such as QIHU, go up like rockets, but can drop like rocks. The GWM New America Folio is all about high growth stocks. In the New America folio we invest in stocks with the potential to be very big winners, but positions have to be carefully managed. Many times this means not holding the stock through their earnings reports, too dangerous with an IPO (new issue) stock.

QIHU reports earnings this coming Monday. If the street like what it hears, the stock will shoot up; if not, it will drop like a rock. Since we don't know what earnings will be, I prefer to take profits now. QIHU is not one of our high conviction stocks yet.

If the street likes the report, I will liked buy the stock back, even if at a higher price.

An old Wall Street saying:

"Bulls make money, Bears make money, and Pigs get slaughtered."

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