Pass on BLOG, But Buy AIRV

The Hot IPO Trader
Wednesday, July 25, 2007
By Louis Basenese

Email – #147

** Pass on BLOG, But Buy AIRV

As expected, BladeLogic (Nasdaq: BLOG) opened at too steep a valuation for us, above $24.

But recall, I’ve been monitoring last week’s featured IPO – Airvana (Nasdaq: AIRV) – closely.  And I think today’s pull back represents a compelling entry.

Shares dropped as low as $6.90 – or 10% – today. And a flood of buyers naturally rushed in because the dip offered an opportunity to buy below the $7 allocation price.

Since my additional research does not suggest the Sprint/Clearwire WiMax deal poses an immediate threat to Airvana, we should look to capitalize on any similar dips today.

Especially since I think we can score a quick 15% to 20% profit just on a rebound to yesterday’s high of $8.35.

So let’s act quickly. If we don’t get a fill by tomorrow afternoon, I’ll report back with an update.

Action to Take:

Buy Airvana (Nasdaq: AIRV) at $7.20 or better. And set your sell stop at $5.75 for protection.

Keeping with our discipline, let’s set some profit targets:

Profit Target 1: Sell half of your position if shares climb 20% above your entry price.

Profit Target 2: Sell half of your remaining position if shares climb 40% above your entry price.

Let the remaining half (or 1/4 of your original position) ride.

Good investing,

Louis Basenese

Stock
Rec
Date
Rec
Price
Current Price
Comments

Airvana(Nasdaq: AIRV)
7/25/07
New
$7.34
Buy at $7.20 or better. Set sell stop at $5.75.

comScore, Inc (Nasdaq: SCOR)
7/2/2007
$22/$20
$23.30
Buy. Sell stop is $21.50.

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