CDW

[Pascal]

CDW is a tech service company.
This company is in Mike's list and yesterday, the stock issued a Volume trigger alert at 11:01

25688

You can see below that the stock is doing well. I was interested in this alert because the price was not extended.

25682

We can also see that the EV pattern was not negative.

25684

Hence, I bought 15 minutes later, after having found that the buy price indeed produced an interesting Reward/Risk ratio.

25686

However, I sold later in the day, when I realized that investors were selling (negative TEV.) You can see that the price was stuck at 33.10, where probably a large sell order was sitting. The trigger alert was not very good compared to other alerts, but my decision to sell was only because of the negative TEV at the end of the day.

25687

After the close, the company announced that current shareholders would sell 15 Milllion shares, which is a 20% increase of the company float.

25683

The stock dropped in afte-rhours, because secondary offerings that only involve shareholders selling is viewed negatively, even though the offering has no dillution effect. I believe that the offering will be priced around $31-$31.5. The stock should be avoided on the long side, because its float turns in about 200 days and a 20% float increase means another 40 days to turn these new shares.

25685

The EV pattern clearly indicates insiders activity and I can tell you that I am happy that I sold.


Pascal

[Mike]

CDW is a tech service company.
This company is in Mike's list and yesterday, the stock issued a Volume trigger alert at 11:01

25688

You can see below that the stock is doing well. I was interested in this alert because the price was not extended.

25682

We can also see that the EV pattern was not negative.

25684

Hence, I bought 15 minutes later, after having found that the buy price indeed produced an interesting Reward/Risk ratio.

25686

However, I sold later in the day, when I realized that investors were selling (negative TEV.) You can see that the price was stuck at 33.10, where probably a large sell order was sitting. The trigger alert was not very good compared to other alerts, but my decision to sell was only because of the negative TEV at the end of the day.

25687

After the close, the company announced that current shareholders would sell 15 Milllion shares, which is a 20% increase of the company float.

25683

The stock dropped in afte-rhours, because secondary offerings that only involve shareholders selling is viewed negatively, even though the offering has no dillution effect. I believe that the offering will be priced around $31-$31.5. The stock should be avoided on the long side, because its float turns in about 200 days and a 20% float increase means another 40 days to turn these new shares.

25685

The EV pattern clearly indicates insiders activity and I can tell you that I am happy that I sold.


Pascal

It appears Pascal that CDW is doing what so many IPOs of late have done. CDW has had three secondary offerings and now has announced their 4th in the last 10 months. This tells me that insiders are getting their money out while they can and perhaps this was the very purpose of the IPO. This kind of practice stalled the KORS advance. I prefer IPOs that are for the purpose to raise money to expand operations vs. management greed.