lol...it's okay, i stated in my post that it might not be well received, but i stand by my comments...i dish it out at times, and i can certainly take it in return
for one day at least that train i saw was coming at me, in terms of knocking down quite a few of my long positions
the upside is that there should be some nice buys in the next few days, if i buy anything which is a longer term hold rather than a flip i will post it here with my reasons for buying, though i may not have time to do it during market hours
one stock i would be looking to buy is DRL, which reached a new high on monday, but then was knocked down by a downgrade yesterday and then interest rate fears today
the rate fears are misguided, as DRL is a bank which operates primarily in puerto rico, and due to the economy and housing situation there, their results are not affected much by changes in interest rates...in fact, at times the company has said that higher interest rates would actually help them make more money, because it would widen the spread they make on their loans, while not cutting into mortgage and refinance business much, if at all
the analyst downgrade was based on strange logic, as they basically said that because DRL's mortgage business will remain strong in 2004 irrespective of interest rates, the commercial loan part of DRL's business will not become a greater part of DRL's overall operations, as the analyst had expected/hoped, so that makes DRL deserve a lower P/E, 10 to 11 instead of 11 to 12, which makes DRL worth 35 to 39 instead of over 40...note that they didn't change their estimate for 2004 of $3.51 a share, which had just been raised from $3.43 after the last report, and DRL has beaten their estimate every quarter for as long as i can remember, including beating it by 5 cents in the most recent quarter
i have liked and owned DRL (formerly DORL) for several years, and i would add more near 30, so it would certainly be one that i would add to the Z port down in this area for a long term hold (i might bore you to tears with my buys that i never sell <g>)
carl |
