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CKCM - Click Income takes a big hit.

The market's reaction to the internet commerce solutions provider Click Commerce's second-quarter results was, in a word, surprising. Revenue increased 115% over the comparable quarter last year. Earnings increased 173%. Yet the stock took a hit at midday, Tuesday.

Investors were obviously expecting much stronger numbers..

Over the past 52 weeks, the stock has risen by more than 350%. Some investors may have used Tuesday's news to sell and capture their oversized gains. But given the growth opportunity represented by its RFID products, a string of eight consecutive quarters of profitability, and a blue chip list of clients that includes IBM, Microsoft , and Cisco, Tuesday's sell-off is a move that looks rather unfounded.

Normally, we would take our loss here and run to the hills, however due to the obvious strength of the stock, and what we believe has has been an over reaction to the sell off. We are going to stay the course with only 9 days remaining. We should get a bounce off of this overreaction and a stronger opening as indicated by the pre-market strength of the issue.

We will hold the position and if the stock doesn't improve we will advise you of buy back points for the position and a possible roll out to a September or maybe later strike price to minimize the loss. We will keep you advised. So until then hold the current position and watch carefully and look for updates

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