Night Ops

I made a few more purchases in the stock market this week. On Monday the insider buying noise around Opsware became deafening. They made the insider buying volume list alongside Overstock.com (Nasdaq: OSTK), IPass (Nasdaq: IPAS), and Restoration Hardware (Nasdaq: RSTO). This trade makes me shake my head. A three year old could look at the chart and tell that it is overbought: http://finance.yahoo.com/q/bc?s=OPSW&t=6m&l=on&z=m&q=l&c=. Technically, the stock looks like it will pull back about a dollar, which is where I should have set a buy alert.

Opsware (Nasdaq: OPSW) hasn't turned a profit in awhile, if ever. And their P/S is over twelve. I think I've let emotion make this decision, some sort of momentum play that may turn into a gap and trap. I liked the name of the company; it sounds like a CIA program. I feel like putting in a sell order for the market open. That is just not the way I normally invest.

The other stock I bought is Lannett Company (AMEX: LCI). LCI is a thinly traded maker of generic pharmecuticals that was founded in 1942. I made a little money on them this spring. They have gapped up in the last month on earnings improvements and FDA approvals. It will be two months until their next earnings report; I got back in the stock knowing I may have already missed out on the easy money.

It's getting hard to resist buying some Google shares. It's practically Jim Cramer's (http://www.thestreet.com/) favorite stock. He has no problem with a multiple of fifty. I have no problem with a company that is a cash machine. I just have a problem with my right brain making investment decisions. So far I have been right more often than wrong, but I never get out of a stock at the right time. Learning with real money is fun!