Michael,
I am a bit confused when you say you can see CPQ in the teens by this time next year. While this is not imposible, they seem to have strong support between 30 and 40, do not seem overpriced much at present (price does not include very optimistic future, just if they do as they do now, price'll keep), further, they've taken on IBM in the past and won, they are the PC market share leaders, management seems competent, etc. The point being, while not expecting much appreciation, and perhaps a bit of drop (say to 35) may be in the cards, especially if there is a bear market till 8/97, is them a good put play? Are you not better off picking a weaker companies in weaker industries? Or is this just hedge diversification play for you? |
