Anybody have an interest in old TWX. I just bought 5 leap 60 puts for
$7.625 which expire Jan 2000. The company looked like it was going
nowhere and was trading fairly high. I don't think management is too
competent, or maybe things are just too competitive but the company is
having great dificulty squeezing out substantial profits compared to
its investment. With a debt to equity ratio of 1.35! and less than
$1.00 cash per share, I think this puppy is a bit overvalued. Currently,
it is trading at 58.13 and has a 52 week low of 36.38 and only $28.83
worth of sales per share. I think if the market takes a downturn, this
guy will fall fairly bad. I don't know though, which I guess is why I
only bought 5 contracts. Anyway, I guess in two years I'll either wish
I had bought more of none at all. #^) |
