|
Mark, I don't follow Pairgain closely, so I won't recommend anything
on them. However, I think it is a good time to buy Cascade puts and
stick a toe in the water on Shiva. As I've said forever, enter slowly
with a small portion of your total capital. I use 90/10 on option buys,
with 90 percent in something that bears interest. You will get those
periods where you are absolutely right on the company and the stock
goes the other way. The bad eps were misinterpreted, badly, as the
bottom of the cycle. We haven't gotten a full quarter of Dram sales
below cost yet, so the bottom is a long way off. There is a lot of
flim-flam about the new MicroStamp chip, with one guy on Prodigy
claiming they will sell millions of them at $45 a shot. -G- I think
I've hurt Bipin's feelings by pointing out that this product does not
exist in a vacuum and there are plenty of very low cost substitutes
around that work just fine. Also, RFIDs made by Motorola and TXN have
yet to make a dent in the bar code market share. This one may do
better, but I doubt it. But with options, you always have to keep
your powder dry and live to fight another day and a whole bunch of
other cliches. -G- Never bet the ranch at any one time or on any one
issue. I have already made a small fortune on Mu puts, so I may be
biased on this one. But I don't see how they make money without
simply holding every chip they make in inventory. Also, though the
chip agreement with Japan was a wonderful thing for consumers, it is
a disaster for MU. They will actually have to compete for business
in Japan instead of having it mandated that they get some. Right now,
the bulls are misinterpreting this deal, too. MB |
