I'm surprised you tried to play INKT considering your viewpoint of those kinds of stocks!
So am I. -ggg-
My thinking was ZERO is a natural bottom for any stock so if I was going to pick one to go long, I'd at least find one under $20. I figured, $13 with book value at $6 3/4, I'll write calls and see what happens. Guess it doesn't matter when you decide to get in, it can still get halved again. The inner Clown in me won that battle unfortunately.
I don't think it is out of the question for NTAP to warn for the quarter, so looking just at the stock, who knows if its near a bottom.
Don't think it matters or not if they warn. Valuation is still rich by historical measures.
It's saying quite a bit if you, Mr. Crisco single digits, would be a buyer at this level. ;)
If the market was bottoming, yes I would be.
If I was going to play NTAP now, I'd go long the common and write the '03 $20. When I was looking this morning it was trading at about $19 with the call going for about $9.50. That would be a double in 22 months assuming NTAP can hold $20, which I don't want to bank on 22 months down the road. But even if you lost, I don't think it would be too bad to get stuck with the shares unless something seriously goes wrong in the competitive landscape over the next 22 months. Probably a little early to think about doing this, BWTFDIK?
chic |
