Stocks - Creative (currently holding)

Accidentally deleted this post, now I need to re-write it again.

Was thinking of selling some portion of my Creative shares.
One of the good things I learnt from trading Forex.
It is good to gradually reduce your trade size when you are earning or losing money.
So that you lock in on profits, or reduce the damage.
But you must enter the bet size to allow you to do this in the first place. Like for Singapore, minimum is 1000 shares or 1 lot. So you should enter at least 2 lots and above.

Why not sell all?
Currently, they are suing Apple and some other big company for copying their patents.
So that they might get a big increase in cash, that is when I will sell if that comes true.

Why sell?
I have lost confidence in their business.
They have good products, but bad marketing strategy.
I saw their products in Popular book stores.
The kind of place kids go to to stock up on their school supplies.
I thought they are good enough to be standing beside Beats or Bose.

Why buy in the first place?
Good quality products, at very good prices.
Strong balance sheet. High cash, which I think they got it when they successfully sued Apple for copying their MP3 patent.
I think Apple paid them 500 mil.
Low liabilities.
Good PE ratio, below 10.
New Roar portable speakers that launched. I was impressed with the design and capabilities. I thought it could be a game changer for them.

Currently, I have not reduce the lot size yet.
I am not in a rush.
I want to wait awhile after the Christmas period.
They might generate a good profit then.

Mysteriously, the stock price has surged around 5% since last Friday.
No reported news, there should be some insider trading.
Either they know their latest financial results, or they know the status of the legal battle, or someone is simply playing some game to raise the price and offload even more (think Jesse Livermore).

I shall wait for a few more weeks or months to see what unfolds.