FEYE moved to ‘hold’, ORCL and INTC sold

By Jim Pearce • August 24, 2015

As explained in today’s edition of Smart Tech 50 Weekly Movers, we are selling Oracle (ORCL) and Intel (INTC) out of the STI Investments Portfolio now that they have closed beneath their stop prices and carry a Smart Tech Rating score less than the sector average.

We are also changing Next Wave Portfolio holding FireEye (FEYE) to a ‘hold’, as we feel its recent price drop is not the result of deteriorating fundamentals, but due primarily to investors abandoning momentum stocks until the current correction runs its course.

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Wes

08/24/15 ‐ 4:42pm ET August 24, 2015 at 4:42pm ET

I thought that FEYE had a stop loss of $41 which got triggered last week. Can you please clarify? Thanks.

Jim Pearce

08/24/15 ‐ 5:01pm ET August 24, 2015 at 5:01pm ET

It did, and we offer stop prices as a data point for each sub to use as they feel appropriate to their portfolio management process. However, we leave the decision to remove a stock from a portfolio up to each portfolio manager, and in this case Rob feels that FEYE will eventually recover so he is leaving it in his portfolio as a ‘hold’. Thank you.

Wes

11/05/15 ‐ 2:03am ET November 5, 2015 at 2:03am ET

Fundamentally I don’t believe what you are describing is a disciplined process. The whole point of a stop loss in my opinion is to lock in a profit or minimize a loss based on a predetermined analysis. If you have a stop loss triggered but take no action then you are introducing judgment and emotion into the process. Further most investors will enter a stop loss GTC so that it will be automatically triggered. I think you should reconsider and either enforce your stop loss recommendations or remove them and then the investor will wait for you to issue a sell order.

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