In my last post I detailed my trades over the previous six months. In summing them up I noticed that I had traded both Amazon (NASDAQ: AMZN) and Cherokee (NASDAQ:CHKE) more than once. I summed up my thoughts on the two by saying "At the end of the day, Cherokee pays a 5% annual dividend yield. Amazon does not."
Cherokee recently announced a 50% reduction to their quarterly dividend. So I sold. Specifically, I sold at $14.75 when the markets opened on Wednesday morning in the aftermath of Hurricane Sandy.
I then turned around and bought Riverbed Technology, Inc.(NASDAQ:RVBD). This network technology company has been on my radar. They've managed their money well, they're profitable, and they've recently been growing by acquisition. Their most recent acquisition of OPNET Technologies, Inc.(NASDAQ:OPNT) has caused Riverbed's price to tumble, though. On Wednesday the price of Riverbed was down nearly 20%. So I bought. Specifically, I bought 100 shares at $18.36 each.
The dip in price will be temporary, I'm sure. For now I've put a sell order in for twice my purchase price, but that's just a hedge against a ridiculous over-correction. I'll probably sell for less than that at some point, when I want to do some profit-taking and buy something else.
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