Bill, Has a deal on Stow been announced? I haven't noticed any news on it. Any idea on how big Stow is (i.e. $ of sales per year)?
$27 US is an ok price relative to _recent_ prices, since it did a big jump from $27 to $31, and has now fallen back to $28.50 or so. Mind you, a little over two months ago it was trading for $24.50. This stock can get knocked around a bit - look at the chart over the past few years. I don't know if UDI's "new look" is going to change that or not. Look at that big bump we had over the past few weeks - that's pretty volatile action for UDI.
For instance, when I got into UDI, I payed $33 CDN for it. The price fell to about 25% to around $25 CDN (I don't recall the exact prices), so I doubled up. When it hit about $39 CDN two weeks or so ago, I sold half - that was a pretty good dip to ride, although it took over a year for the whole thing to play out, so we're not talking a thrill a minute here, but I'll take that kind of profit any day.
So given the past volatility, and the 100 point a day swings on the DOW these days, there's a chance that you might get it cheaper if you're prepared to wait, and if this sort of behaviour (25% drop) happens again. On the other hand, UDI is out hyping the company to the analysts (see techstocks.com, so there could be some demand generated by UDI's promotion, which could move the stock - at least in the short term. Will it generate sustained demand so that the price never gets as low as $27?
Another thing to consider is how badly do you want to buy UDI - are you desparate to have it? And of course what is your style: would you "risk" having to pick it up for $31 if you had a shot at getting it for $26.125?
Sometimes I don't like these sorts of decisions, and I am certainly not going to presume to offer you any advice, since I'm sure that you have your own plan (also, since I certainly don't want to share in the blame in any way if you lose any $). Sometimes if I have too many things to balance (or if the risk/reward ratio is close to the line) I go on gut feel on these. (Mind you "gut feel" is what got me into gold a couple of years ago - Ouch! and it also got me into the oils a couple of years ago - Yahoo!).
Regards,
John Sladek |
