How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Richard Gibbons who wrote (11909)	11/28/1999 5:48:00 PM
From: Herm	of 14162

Hi Richard, I obtained very quickly the fundamentals and TA weekly chart profiles for your two stocks. Experience has taught you to recognize value in an underpriced stock. That takes quite some time to learn and develop. You have good instincts. From a P/E standpoint these two stocks are very cheap at this point. From a TA point of view, they have a buy me all over it! WAC WAC RSI and OBV is super low and the stock price just fell off the cliff into no man's land. Trading volume has picked up and this stock is primed for a rebound of some kind. Stocastics is about to go positive. The open interest in the options is kind a light. So, it does have a bit more risk than TOM. NYSE: (WAC : $12 13/16) $735 million Market Cap at November 26, 1999 Ranks 592nd in the Fortune 1,000 on Revenue & 556th on Profit. Employs 21,000. Trades at a 72% Discount PE Multiple of 5.2 X, vs. the 18.9 X average multiple at which the Apparel SubIndustry is priced. Apparel SubIndustry up 1.77% / Retailers Industry up 1.12% Today siliconinvestor.com TOM TOM has the same technical pattern that spells cheap! Low RSI and OBV with price support in the current range down to $20. Stocastics going positive. NYSE: (TOM : $25 5/8) $2,463 million Market Cap at November 26, 1999 Trades at a 45% Discount PE Multiple of 10.3 X, vs. the 18.9 X average multiple at which the Apparel SubIndustry is priced. Apparel SubIndustry up 1.77% / Retailers Industry up 1.12% Today siliconinvestor.com So, Richard! There are clear signitures to your keen investing knowledge about good valued stocks. TAs would only sharpen your expertise and increase your batting average. Many investors ask me where they should look for stocks to invest in. I tell them they are all around. You just gave us two darlins that in time may prove to be worth the risk. Like you said, at the current levels the two stocks have much more upside potential than downside. Entry into the stockss would make sense as long calls sideshows waiting for price increase and eventual entry into the stock by exercising. Or, just a straight trade of the options for a quick buck or two.

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