GUID (Guidance Software Inc) #1

GUID came public at 11.50 on the 13th. It never traded below 13.50 and closed above 15 the first day. It continued higher for 2 more days peaking at 17.90 at which point it began its first pullback. I bot the stock on the 27th. The 26th was its first positive day after pulling back below 16 and so I bought a 10,000 share position the next day as it traded up on higher volume. By the end of the day it had logged a down day but basically it closed flat. I expect it to continue back up to at least test its previous high over the next few weeks.


Fundamentally there is not much out there on the company yet. They turned their first profit last year and they are increasing sales impressively QoQ this year. They are in a strong group right now and I expect that to provide some additional support. As always, I am working with a 10% stopbut will cut the position if it seams necessary before i get to that point.





JAN 9, 2007



The stock has been a heartbreaker as it sold back down after making a promising run. I was trying to hold for a rebound as I still felt the stock had some room to run but Tuesday the stock fell off a cliff and I was forced to stop out of the position. Liquidity is scarce (always the case when you really need to get a trade done) and I felt fortunate to get my 10,000 shares sold at 13.85. This left me with a loss of $21,485 or 13.4% on the position. Another good reminder to keep smaller positions in illiquid names as it is more difficult to reverse your position when taking profits or stopping out of a position.