To All, It's baaaack! Ciena has recovered nearly all of its losses. This has been one of my all-time winners, though it should have been even better. As old-timers know, I bought puts in the 60s, 70s, 80s and 90s as this turkey took flight. I also bought stock under $10 and sold it at a double after the crash. However, I did make one mistake buying calls for the Pizzazz account in the 40s on the way down. Oh, well, it was a huge winner.
So, what has caused the rise to $71? They lost 3 cents a share last year. Oh, yeah, that is terrific. However, they made 3 cents this quarter. Now, if they double that and carry it out for a full year, which they won't, the stock will be selling for 296 times its 24 cents eps.
This one would be a total layup for puts, AGAIN, if it weren't for the fact that somebody stupid might make another takeover offer. Hopefully, Telabs has learned its lesson, but you never know what dumb people will do during a mania. Anyway, I bought a third and will buy more on any subsequent brain dead rise in this bowwow's price.
O.K., it was a fine co. when I was buying it under $10. It is only a bowwow because of the silly price. <g> |
