Rick,
DD takes time, and ETEK stock dropped 12 points in a nanosecond. It's had a bad case of indigestion for a week now. Just look at the spread chart, until today.
My contention is that by the time, even with high-speed web access, you:
1) do research,
2) call the company,
3) find other articles that corroborate or dispel these fact,
4) check the SI, Yahoo, RagingBull, Motley Fool, and CNBC boards for information,
5) check Briefing.com,
6) check TSCM,
7) wait for David Faber to mention it on CNBC.....
You've just might have lost a bundle.
Better to sell, reduce the risk, and buy back in then to hold after your DD comes up OK.
ESPECIALLY in arb situations. The downside risk in many of these deals can crush long players with NO protection. These are very skittish deals sometimes, especially after having witnessed AND LOST in other deals that did fall apart.
I know of NO-ONE that is long ETEK, and also long ETEK puts.
Regards,
Steve |
