Although you know my rule when a stock like this gets crushed…

Well, the markets are flat and most of our stocks are too, with too big exceptions.   First, as noted earlier this morning, that LPS is just getting killed today, on top of the 8% drop yesterday.  LPS is down more than 12% today and we probably out to expect to see another counter trend rally next week at some point and that might give us a chance to make the size of this position even bigger than it is, which is already by far the largest short on the sheets.

And then there’s Celestica, which got downgraded by Citigroup because RIMM is one of Celestica’s biggest customers and clearly RIMM’s orders will be down this quarter and next.  That said, Celestica also makes handsets for the Android boys, along with Xbox 360s and infrastructure equipment for the likes of Juniper, Cisco and others.   The stock is now below even where it was when I first put it into the portfolio for the newsletter and it’s trading right now at less than 7 times next year’s earnings estimates which have been raised over the last few months consistently.  Account for the cash on the balance sheet and we’re talking about a stock that’s at less three times next year’s estimates.  The point being that much of this concern about an impact from RIMM is already likely more than priced in at these levels.  I’ve been wrongly adding to the Celestica common this week and for that I am sorry both for myself and for you subscribers.  That said, I do think this thing remains a buy, although you know my rule when a stock like this gets crushed — let it settle and stabilize before getting aggressive in it.  I’ll hold my Celestica for now and I will likely look to finally add those calls I’ve written about wanting to buy in this one sometime next week.

Back in a bit with positions and I am about to step up and do some buying so stay tuned for that post too.