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A few moments ago I sold my 103 shares of Cerner (CERN) remaining in my Trading Account at $47.32/share. These shares had been purchased 2/2/07, almost exactly one year ago, at a cost basis of $49.76/share. Thus I had a loss of $(2.44) or (4.9)% on this purchase. I sold these shares simply because after a single sale of Cerner at a gain (I had already sold 17 of my 120 shares of Cerner on 10/11/07 at a price of $64.20 representing a gain of $14.44 or 29% since my purchase), I push up my 'mental stop' (I still don't do this automatically) to break-even. Cerner dropped below my break-even or cost per share and thus needed to be sold per my portfolio strategy.
I do not have 'permission' to add a new position. But in fact I did enter a trade which I shall discuss shortly separate from this 'portfolio management' strategy.
Since the company reported fairly strong earnings yesterday after the close of trading but revenue came in at $394.5 million, below analysts expectations of $411.8 million for the quarter. Even though earnings at $.52/share came in ahead of expectations of $.47/share, the stock took it on the chin. And I sold my shares as planned.
Going forward the company estimated first quarter earnings of $.43 to $.44/share on revenue of $390 to $400 million. Analysts are looking for revenue of $404.91 million, so again, this is below expectations. However, the company did guide earnings for the first quarter above analysts' expectations of $.41/share.
Simply put, the market is unwilling to accept any imperfection in the earnings announcements because everything is so 'skittish'.
So even though I have now sold my own shares, my outlook is relatively positive for Cerner and
CERNER (CERN) IS RATED A HOLD
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