Trindy, HWP's "better than expected" eps are a huge joke. The company posted 73 or 75 Cents, depending upon which set of books you look at. Until the preannouncement of a horrible quarter in October, the estimate was 99 cents. So, they set the bar way low, in fact, under a hole in the ground, and are now being rewarded for being able to jump over it. That is truly silly.
Then, the scamster of a CEO comes on to say the co. will grow at 12-15% this year. First of all, that ain't enough for a stock selling at 38 times eps. Secondly, the huge 4% growth this quarter isn't much of a start on that goal. <g>
The bulls will sucker in for any scam that comes along.
As far as my strategies go, I rarely buy Leaps. They are simply too expensive. In fact, I sell them in spreads big time in my income accounts. I prefer out of the money by one or two strike price puts in the 2-4 month range. They have always given me the maximum profit at the least risk. |
