SCMR

[David Randolph]

That was an ugly candle for SCMR. I hope the stock holds the $4.25 support, but I'll continue holding it anyway.

Although I don't see much downside from here, I also don't see much upside, which is worrisome. I'll hold and study SCMR some more time, I'm interested to know if the company has any expansion plans, what's the management plan for the use of almost $1B in cash?

[netfishmademerich]

David what do you think about an automatic sell rule say end of the day 8% below our purchase price? Looking back we rarely bounce back from an 8% loss and come out with a huge profit.  I believe we will be better served if we use some rule that will limit our losses very early on.  "The best trades are profitable from the beginning"

[David Randolph]

David what do you think about an automatic sell rule say end of the day 8% below our purchase price? Looking back we rarely bounce back from an 8% loss and come out with a huge profit.  I believe we will be better served if we use some rule that will limit our losses very early on.  "The best trades are profitable from the beginning"

I like the idea, it is quite simple. Taking losses is the most dificult part of the stock market game and if you can make it simple and objective, the better it will be over the long run.

But, there are logic stops, like an ascending trendline, an horizontal support level, a moving average, whatever. The trick might be that, before we buy, we should consider where's the logic stop level, and if it is too far below the current price, wait for a pullback before buying.

I'll use that rule from now on netfishmademerich, thanks 

I'm losing 11% on SCMR, so I should sell it right away and take my loss, right? Right.

I know, I know, and what about the fundamentals? Which should I trust, fundamental trends from the past or a logic money management rule that limits risk but keeps the upside potential unlimited?

Money management is the most important and most fundamental issue on stock market trading. If I always limit my risk, cutting losses short and let my profits grow, I'll come out ahead over the long term. Simply because the risk is limited and the potential is unlimited.

Therefore I'll cut my loss on SCMR, selling around today's open.

[Amarens]

Just came back from a beautiful safari holiday in Kenia  , curtiousy of my mother. Thanks Mum  .

Put a sell order on SCMR and I'm happy I did. Only made a 2% loss. Still don't understand it why the fundamentals don't work voor SCMR  But I guess that's the way it sometimes goes.

Follow you on taking losses and leting profits run. Unfortunately I'm not always there and my bank does not allow stopp loss for the States. Considering a different broker. On some occasions I came out lucky (BTUI, SINC, SAMC, and more recently FNSR) and sometimes not (HOM, AVII, NVAX). On average still happy. Looks like I'll be lucking out today also on SWIR and EGHT!

But hey without luck....

Going for a great year and I wish everybody health and hapiness and ofcourse hapyy trading

Amarens

[David Randolph]

I'm glad you did better than me on cutting losses Amarens, but be carefull, you were able to come out better because we were on a bull market, things can be very different if we enter a bear market as I suspect will happen.

You really need to change to a brokerage house, your commissions will be lower, better execution and more options as stop loss orders, etc.

Good luck 

[usedcasting]

RSI - AT A GOOD LEVEL
STOCKASTIC - HEADING UP
VOLUME STILL GOOD
TRADING RANGE NARROWING

All DD that David did still applies.

I believe an upward break is in order

PS. Just thought I would take a shot with one.

Great day all!

uc.

[usedcasting]

Nice move on good volume!
Time to break $5 hopefully.

uc.

[usedcasting]

David, I was just reading your review on INSM and your continuing to hold after being down 11%. I always liked your review on SCMR but you sold with an 11% loss. Now they are back above your original buy price and I was just wondering what your opinion is of SCMR at this time.

Thanks very much

uc.

[SmartWrasse]

I held my small amt on this one also.  Looks like it is banging on the 5 mark 

[usedcasting]

A nice push this week (3 Candle sticks).
Good volume Friday
Earnings scheduled for the 21st of Feb.
Maybe an earnings surprise. Hmmmm!

[usedcasting]

SMCR made 2 cents/share and stock is up a little pre-market. Here the news;

Sycamore Networks, Inc. Reports Second Quarter Fiscal Year 2006 Financial Results
Tuesday February 21, 8:00 am ET

CHELMSFORD, Mass.--(BUSINESS WIRE)--Feb. 21, 2006--Sycamore Networks, Inc. (NASDAQ: SCMR - News), a leader in optical networking, today reported its second quarter results for the period ended January 28, 2006.

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• 
  Revenue for the second quarter of fiscal 2006 was $20.8 million, compared with $14.9 million for the second quarter of fiscal 2005.
  
  Net income for the second quarter of fiscal 2006, on a generally accepted accounting principles (GAAP) basis, was $5.0 million, or $0.02 per fully diluted share, compared with a net loss of $5.4 million, or $(0.02) per fully diluted share for the second quarter of fiscal 2005. Non-GAAP net income for the second quarter of fiscal 2006, which excludes stock-based compensation expense and a litigation settlement, was $7.1 million, or $0.03 per fully diluted share, compared with a non-GAAP net loss of $5.0 million, or $(0.02) per fully diluted share for the second quarter of fiscal 2005. The reconciliation between net income (loss) on a GAAP basis and net income (loss) on a non-GAAP basis is provided in a table immediately following the Unaudited Consolidated Statements of Operations included with this release.
  
  Revenue for the first six months of fiscal 2006 was $48.1 million, compared with $29.1 million for the first six months of fiscal 2005.
  
  Net income for the first six months of fiscal 2006, on a GAAP basis, was $11.9 million or $0.04 per fully diluted share, compared with a net loss of $13.2 million, or $(0.05) per fully diluted share for the first six months of fiscal 2005. Non-GAAP net income for the first six months of fiscal 2006, which excludes stock-based compensation expense and a litigation settlement, was $15.4 million, or $0.05 per fully diluted share, compared with a non-GAAP net loss of $12.2 million, or $(0.04) per fully diluted share for the first six months of fiscal 2005. The reconciliation between net income (loss) on a GAAP basis and net income (loss) on a non-GAAP basis is provided in a table immediately following the Unaudited Consolidated Statements of Operations included with this release.
  
  "Q2 was another solid quarter for Sycamore. We continue to maintain strong margins, carefully manage our expenses, improve our operating performance and generate cash from operations," said Daniel E. Smith, president and chief executive officer. "As IP-based voice, video and data applications drive increased demand for reliable and agile bandwidth in backbone networks, our data-optimized optical switching solutions continue to deliver unique value to our customers."