Joe-
HRB looks like a good short put play here, subject of course to the overall market.
The stock seems to have long term support in this price range, and the fact that the company did a split which lowers its price to this area probably reflects their confidence in the future, as no company wants its stock trading down into the teens.
With a P/E ratio of 11x the current year's earnings, and a PEG of 0.89, the downside seems limited. It might even be a good play on the long side, but a short put play seems like excellent risk/reward.
Finally, there is almost no downside and potentially significant upside to their application to open a savings bank. If they are successful, they will be able to realize significant savings, and if they are not, their situation will stay the same, rather than worsen.
biz.yahoo.com
Looks like a great idea to me, thanks for posting it here. If you find others, I'd love to read about them.
Carl |
