Friday, December 20, 2013

Closing Red Hat: Wrong Type Of Cloud

I closed position in Red Hat (RHT) today. Initial idea was to play on cloud, described here. But later on, I started to doubt that PaaS (platform as a service) is a way to go in the cloud. That lead to understanding that initial idea was wrong (here) and that RHT is not the way to play on cloud.
I waited for a better price through this summer and fall, decided to sell into Christmas rally. Because I didn't know the future at the time, decided to sell a half before earnings report and a half after. So it is.
Of course, after company managed to beat the estimates and pop up after earnings report, it's hard to think that decision was right. But rear view is always 20/20. And discipline trumps conviction, greed and anything else.
Yes, I took some loss on this position. Well, good gains are coming with high risk.
Disclosure: I have no positions in RHT.

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