Peter, OT re Dell, I bought January calls just before year end, sold half a week ago and the other half yesterday. Should have held on one more day, but I won't complain about a 575% gain in 3 weeks. I almost bought the stock instead, but wanted to stay fairly liquid, so I got 3 times the upside (3x the share exposure) for one tenth the outlay. It, any many other stocks, were such a screaming buy (based on old fashioned valuation metrics and excessive bearishness). Dell is still a buy, IMO, but my options were about to expire. It could run to 30-33 ST, downside (IMO) only 22-23 (I'd jump back in there, no question).
Re ELNK, I added some Feb calls to my shares today (on the morning dip). Great valuation, IMO, and I think the worst is behind us, sentiment wise. Resistance probably 9 1/2 - 10, could run to 13-14 easily. Good press recently and McQuary's comments about EBITDA lead me to think sentiment will continue to improve - it was sooooo negative.
BTW, last time McQuary promised breakeven, he (and Brewer) hit it on schedule. Profitability won't be far behind. 1997 all over again.
Regards,
Bob |
