I recently purchased some of this for a friend. He likes the big cap value and dividend. buy low - sell high. Follow any others in the same boat?
My biggest GARP (Growth at Reasonable Price) play is ELN (Elan Pharmaceuticals). It has just made a run from 22ish to 28ish. It is fairly valued at 40 or better. It is fairly volatile, though, so you might see some pull-back to 25ish (or you might not). To enter at this juncture, I would probably write naked puts (in order to buy the stock cheaper upon assignment).
A GARP play in the tech sector is ELMG (EMS Technologies). It is depressed after a bad quarter (still made money) in a hot sector: EMS designs, manufactures and markets products for use in a range of wireless communications applications, including space and satellite communications, radar, surveillance and military countermeasures, logistics and PCS/cellular communications. Growth rate is above the p.e.
Finally, a GARP play in health care is USON. It too is depressed (at 5 now) after a bad quarter (still made money, just below expectations due to a merger). Again, growth rate is above the p.e.
I have others, but they may be too volatile for your taste (like NITE).
Gary Korn |
