Buy the puts, take advantage of the situation.
For the life of me, with thousands of stocks to select from, I just can't figure out why anyone would want to own this turkey. Forgetting the runup by the scaredicats from March to recent (a couple of ignorant analysts called this a safety play and thousands went along) the stock has dropped from 60 to 24, not forgetting March's 13.
WMI is still 9 BILLION in debt (not million, Billion). Divide that into future earnings and there is nothing left for years and years and years. It's already sold its most valuable assets to pay down much higher debt. Lawsuits are pending.
Technically, it is in a downtrend, with the stochastics, MACD and the MACD Histogram all indicating a lower price future. Geez, can't you find something more intelligent to invest in...I am mystified at your motivation. There is no way you will ever get back $24.41 from this stock unless you sell into the stupid 1 cent rise on 2/1/01.
This stock has every reason to go down, and no reason to go up, excluding idiotic behavior. Look at the pathetic chart. It is forming a head and shoulders as we watch. Read the news. The stock is selling for a minus, that is a minus, 61 times earnings. That means it is losing $.40 cents for every share you invest at this very moment. In fact, only a total fool would invest in this stock at today's price. You must be either stuck good in it and trying to build it up or you just haven't figured out trading "value" stocks, of which this is no longer, though it was long thought to be.
The puts are dirt cheap. Buy them now (give yourself some theta time) and enjoy the ride. It's a can't lose trade, because this stock is going to crash the rest of the way. Like a flushing toilet, it will go all the way down.
Disclosure, as soon as I researched this turkey I ordered out of the money puts so cheap I could not believe it. I just could not believe my good luck to find puts so cheap. I'm going to profit from this one's comeuppance.
Management sucks across the board here, and the market isn't exactly "picking up", as they say in the trash business.
Do your own due diligence. That way, you'll know I'm right.
Enjoy.
Rak up a winner |
