I was clearly expecting the wrong things from this report, especially since the stock traded below 11 afterward. I thought a better Q2 guide as implied by 2011 guidance would be viewed positively. I thought investors would key on the positive vibes of the semi business. I figured a “higher guide” in the context of the ongoing solar disaster would be viewed positively.

I was clearly wrong.

As folks in The PPT saw (but were kind enough not to bust my chops about, the gentlefolk they are), I followed this pig right into the rabbit hole. Luckily, this [so far] is no GNK and I recognized the increased risk when WCH did not respond to a similar report and thus refrained from adding to my snowball immediately before the report.  But I am still losing on this trade.

Am I deterred?

NO!

<sarcasm>I follow fundies, and hope comes with the future as someone with a larger balance sheet is sure to recognize the value I have determined. I am sure of it.</sarcasm>

I am not one of those wacky traders who adds on the way up. I insist on proving my worth by adding to my position on the way down. I look for points where I think other folks found prior value and then use discretion to add to my snowball. I plan to add to this snowball sometime in the next month at some level between 11 and 10.50, likely ahead of next week’s analyst day. I will not add to my position higher than 11. If the stock goes below 10.50 and I am still comfy with WFR, I will buy again at the next ‘support’ point.

I call upon this site’s Chart Readers Anonymous to help me find my next buy point below 10.50, should the stock actually tank. Please chime in, folks.

Tweet