Lifted from Yahoo; IMO, solid perspective on SPYG.
<<I had posted previously about daytrading SPYG.
My first play was last week when I bought SPYG at $11 and got out at $16 1/2. I also
posted about PUTS options. I purchased Nov. $12.50 and $15.00 PUTS. I made money on
the Nov 15 Put,but took a small loss on Nov. $12.5 because SPYG showed too much
resistance around $15.00 (I think the lowest it dipped to was 14 1/4). So I bought to cover. I
am glad I bought to cover, because the next day it climbed to $16 1/2 again at the close.
I thought about re-entering as a long position then but I was margined out. No more cash. So
I thought, I'd do it tomorrow. Well tomorrow as it turned out was yesterday, when it climbed
to close at $24 1/8.
After agonizing reseach and comparisons, I bought long term position at low $20s including
Jan. 25 Calls Option.
My personal analogy is this, SPYG is going to be bought out by some company in the very
near term because it is grossly undervalued and has an opertional product--Prism 3.0. Prism
is not in beta stage. It is in operational stage. It had just recorded a new contract with Japan,
one of the world most populated techies outside the good 'ol U-S-A.
Am I being optimistic? Sure I am. But my optimistic based mostly on educated guess and
available facts.
Facts: I looked up LBRT and PHCM. (Both are new IPOs and their prices looks out of this
world). Here are the comparisons:
LBRT--Price $70 9/16 +$2 9/16 (+3.77%) as of today. 52-Wk Low $14.375, Curr.
$68.00, High $72.375. Annual Sales $19.30M, Loss $38.9M, Loss -202%
Most Recent 3 months Rev. $5.3M Vs. Loss ($12.5M).
PHCM--Price $214 11/16 -$5 15/16 (-2.69%). 52-Wk Low $32.25, Curr $220.625, High
$251.25. Annual Sale $22.00M, Loss ($20.8M) Loss % = -154%
SPYG--Price $22 1/8 -$2 3/8 (-9.69%). 52-Wk Low $8.625, Curr $24.50, High $32.50.
Annual Sales $29.60M, Loss -$2.82M. Most Recent 3 months Rev. $9.20M, with
$335,000 profits (.02 per share Vs. Loss of .05 per share same period last year).
***NOTE***All data were taken from Yahoo Finance-Profile***You can find it there.
In looking at these numbers, one must be crazy NOT to see how undervalued SPYG is.
Granted it's volatility in the past, but that will change when more companies are deploying
Prism 3.0. I for one had look deeply into SPYG potential and came up with a conservative
valuation of $45-$50 within 3 months period. If that happens, and I sincerily hope it will, then
I'll be laughing all the way to the bank, minus Uncle Sam's share of course.
I am not going to miss the next ride up.
Sammy >>
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