Resetting This Position
The apparent reelection of President Bush is putting a spark in the market this morning as the Dow futures trade 100 points higher and the Nasdaq futures climb 22 points. We believe this rally is a good opportunity to take some gains off the table so that we can put money to work in new names.
We plan to sell 500 shares of Restoration Hardware (RSTO) at the open. The stock is indicated to open higher than Tuesday's close at $5.50. While we are still confident in the long-term turnaround plan at Restoration Hardware, it is not tracking as smoothly as we had projected. We have been buying the stock aggressively on its downturns and this sale will take our position back down to a more reasonable 5.5% and give us a cash cushion to put to work in new names that we believe have greater near-term upside.
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