I sold all client and personal positions in Dreamworks Animation (DWA) on Tuesday after it had rebounded from overzealous selling following its own 2Q08 report.
The sale of DWA was a result of my trading thesis falling apart when the company indicated that higher than expected international marketing costs would take away the earnings upside from the better than forecast worldwide box office performance of Kung Fu Panda.
I view DWA as a trading stock and it is now lacking catalysts until the 3Q report in late October followed by the early November opening of Madagascar 2. I could very well go long DWA again ahead of those events.
I held DWA for two months during which Northlake client positions produced a return of 0% to -3% loss. Relative to the S&P 500 it was a decent investment although it did not meet my goals of booking a 15% gain.