CNET Networks (CNET)

Company. CNET is "the leading global media company informing and connecting the buyers, users and sellers of technology. The company differentiates itself from other media providers by combining an in-depth knowledge of the technology industry with the power of technology itself." (company website)

Buy. In contrast to my buy of EFDS, this CNET buy was all wrong.

CNET stock had been climbing for several weeks. When it finally broke the $5 barrier near the end of May, it did so with a spectacular surge that took the stock to a high of $7.19 in two weeks, a 40% leap. I thought I was being smart by waiting for the stock to retreat. In three days time it fell back down to just above $5.00. I bought.

What I failed to notice was that my indicators had begun sloping the wrong way, and the price continued to fall, eventually reaching $4.49, well below my 8% loss-limit. Unfortunately, I wasn't watching the stock when it crossed my limit. Once there I decided to "ride it out."

As luck would have it, an analyst upgrade on 26 June reversed the slide down this slippery slope.

Sell. CNET opened much higher today, ahead of the earnings report after the close of trading.

I sold half my stake in CNET. Again I'm hedging my bets. Today's jump and heavy volume would seem to indicate that "the market" thinks the stock is going to continue to rise. But after seeing what happened to Knight trading after it turned in a good report, I'm cutting my risk in half.

It will be fascinating to see what happens tomorrow. The consensus Expectation for CNET was a loss of 9¢ per share. They actually beat expectations with a loss of only 8¢ per share. Will the market punish this good deed? Or reward it? Tomorrow will tell the tale. In after-hours trading, CNET is unchanged from its close.