jhg,
Don't know where this story came from, but as yet I have seen no news that PWER was actually added.
As you know, the prerequisite for addition was the finalization of the UCM/PECO Energy merger to form EXC, which would then free up the spot for PWER. This merger finalized after the close on Friday:
biz.yahoo.com
So, evidently institutional buying of PWER can now begin. Don't know how much of this might have taken place after the close on Friday. Also, presumably some will take place pre-market on Monday via the ECNs. Still, I'd guess a substantial portion will occur during the regular session. I'd say PWER will gap up some on Monday, and will likely have a good day on strong volume. But, earnings are 10/25, either before the open or during the session, with a conference call scheduled for 11:00 am EST. Here's the link:
vcall.com.
My guess is that PWER will announce earnings at the time of the call, which would be 8:00 am PDT, and they are based in Camarillo, California.
If they continue to ramp going into earnings, then a selloff on the news becomes an increasingly likely possibility. I've still got a long position (Nov 65s), but looking to close that at the first indication of a selloff, possibly even before earnings if it ramps sharply. Might even take up a temporary (1 or 2 days at most) short position via puts just after earnings if a selloff ensues, then go long again via calls, since a selloff is not likely to be long lived IMHO. I'll be watching to see if this scenario takes shape.
Should be an interesting week.......
WS |
