Houston Exploration THX is trading up to $58.67 this afternoon, in an otherwise difficult market to be owning stocks. As much as I like this company, the shares are now 20% above my cost-basis, and I believe it would be prudent for readers to take some profits off the table.
I'm restricted from trading Houston Exploration myself but would use this markup to sell 500 of my 2,000 shares if my restrictions allowed. While the stock is going for just 10 times expected full-year earnings, it never pays to be piggish in a volatile market.
Regards,
James J. Cramer
DISCLOSURE: At the time of publication, Cramer was long Houston Exploration.