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Strategies & Market Trends : Range Bound & Undervalued Quality Stocks
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To: Larry S. who wrote (1693)4/3/2000 5:50:00 PM
From: BWAC  Read Replies (1) of 5499
 
Larry,

As I think CNC is my troubled idea, let me answer. It's down. It's down way past where I thought it was a good idea. Yes there are many value stocks out there. I bought many of them and they are up. Many have went up 30% or 40%. I hope others bought too and I sure hope nobody got hurt with CNC. CNC went down. Way down in my opinion.

But at $9 or $8 or $10 is it down far enough that I can make out like a bandit? I think so. It's got some troubles, but even the lowered earnings look good to me? Almost 50% below book value? A Dividend. Today's news was the same news as was out on Friday, except with a different twist. Friday it was down 2 1/2. Down 2 1/2 more today. May be down more tomorrow. Hell I don't know.

What I do know is that it fits the cheap valuation idea here. Other insurance companies went up recently. Maybe they will come look at CNC some.

So in essence, yes it may be trash, but I feel it's a good price for trash. The yearly high was $35. Hasn't been below 10 since '92. So if CNC is worth somewhere in between I'll be happy. If goes back above $10, and I can sell Covered Calls until they take it away, I'll be ecstatic.

If I am completely wrong let me know. 42,000 shares long/9 3/8 average. Short 50 April 10 Puts 1 7/8.

And yes I plan to lighten up as the price improves. But will add no more if it significantly declines. On the first blip up, Calls will be sold to offset the risk.
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