Aloha, Jeffrey,
Your thoughts on the overall market situation echo mine. I was using margin out to 35% at times over the last several months (try not to get over 25%). Now I've just sold into this morning's newsless market maker head fake over at CLPA. Outta there with a 5 bagger, not counting a bit of option income the first couple of months. The idea is to wait for another pullback and buy calls just in case.
So now I've got some cash. Except for three core holdings of stock, I'll mostly be scalping at bottoms with OTM put sales with all that cash for collateral. I love this method. But of course, when the two of us collaborate, we seem to do pretty well with our agreed upon picks, though each in his own style. So I'm up for doing that, too ;~}
I already own as much stock as I can stand in PTEK's line of work. PTEK and PETM are really kinda OT here, but what the hey, it's your thread. I assume you're interested in it because of the VC business? For similar reasons, I already own shares of SFE. SFE's performance and stock split announcement have negated some insider selling there; not sure if the insider selling at PTEK is as benign. In any case, thanks to having a piece of VerticalOne, PTEK now owns shares of SONE. Funny thing: so do I, because I owned EDFY. Both were bought by SONE last year. SONE is a core holding that I've been able to chase while hedging. I am comfortable with the company's prospects even in a bear market, and familiar with its trading patterns, so I will continue to use it as a vehicle for harvesting time premium. PTEK does have options, though. HMMM. PTEK would do well to spin out its VC arm; it would make the company much easier to value. Betcha they try it when Internet stocks are once again leading all sectors. DD on these complicated incubators and hybrids is a pain, but sometimes worth it. For instance, when you find that it's trading at a discount to its NAV, as SFE was until a couple of days ago. See if one of the PTEK threadsters has this figured out already, and then just check his numbers, is my advice (you've likely done this by now). Kick the tires, don't reinvent the wheel.
Just starting on USDL and SYNX. STAA seems to be making a mini-base at 12; you'll either get or loose an entry oppotunity in the next few days. Not a rocket, I don't think but a solid performer that will slowly attract attention. If a buying op does arise again (price<11), I will sell more puts.
Back in a while with more on USDL and SYNX. What's your thesis on PETM? It's been, shall we say, a dog.
Cheers, Tuck |
