John, Harry, Michael and All,
Yes, I have been away on a Caribbean Cruise and have just returned a couple of hours ago. As you can imagine I feel very disoriented right now, and it will take me a couple of days before I can catch up.
Every once in a while, one catches a lucky break. Such was the case for me, this week. Prior to leaving last Saturday, I placed an order to sell my short term IBM Puts just in case IBM went above 140. I did not want to give back any more of the significant profits that I had made on those contracts, than I already had. Consequently, on Monday, while oblivious to what was going on, and sailing to Barbados, I was sold out. However, yesterday when I called in from St. Thomas and heard that IBM had reached 157, the day before, and that as expected IBM's margins were down, I bought back the IBM Puts that I had previously sold on Monday. IBM was at the time 153. And while I have not had a chance to examine IBM's Q1 earnings in detail, it does not make sense to me that IBM should soar on revenues up only 9%, from the year before, while GPM's continue to fall rapidly. Contrast the reaction to IBM this week, with the lack luster reaction to Intel's stellar performance announced the week before, and something is out of wack. Or have I missed something while I was away?
Bob Bragg, Are you over here yet?
Good to be back.
Regards,
Jules
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