donnie, when i say margin, i mean did you borrow from your broker and use your existing stock as collateral. the importance is that if the price drops too low, the *margin man* calls and he ain't too friendly... i don't like mr *margin man* ;-)
imho (and you can hang your hat on the fact nobody is paying me for it ;-), this stock will go absolutely NOWHERE for august and september.
in october, all the people that feel earnings will turn around (but were unwilling to take the 2 month risk of more bad news - that this company has attracted like a nuclear powered magnet ;-) will begin to buy and take a 1 - 3 week time risk on their money. *IF* eps is good, look out :-) i will be one happy camper :-)
i have 2 accounts, my ira and my regular account. my ira is currently 100% nfli in case i'm wrong about not going anywhere in these couple of months. my reg account was 80% nfli until i sold the last bit at $10.75.
i'm trading in sexi and bdpc at the moment. i've lost several shirts on bdpc but i hope to make up some of the money by october. lot's of positive rumors on sexi (videoteleconferencing :-)
imh(unpaid)o, the risk is only until eps are released. after that, ASSUMING good eps ($0.45+), it doesn't matter when you buy nfli during this period, you will make money before the year is out. the only question is whether you will make more by buying even lower... this also assumes no more major negative announcements...
howz bizness? iz the downline/upline excited? do you have your 3 eras? what about george?
good luck :-)
jeff (nfli ask @ $10.00)
ps - i hope nfli can make me into an era by dropping $0.70 to the bottom line :-)
pss - i suggest that you look at pioneer trading. they allow to trade INBETWEEN THE SPREAD. this is invaluable for a stock like nfli that has a 9% spread. it can save you 1/4 point in and 1/4 point out... their number is 800-756-6652 and they are based out of my favorite ag's state (in chicago) ;-) i hear good things and have sent away the paperwork to transfer my geee*iwishicouldtrade account to pioneer.
psss - i only buy warrants (nfliw). one w + $3.75 = one common in '98 sometime. for example, the stock is trading at $13 - $14 and the warrants are trading at $9 1/4 - $10. $10 + $3.75 = $13.75 vs ($14) so the warrants are a little cheaper today. the reason i like the, though, is because the roi is amplified (both up and down - bit i'm long on this stock and think it will zoom).
for example, say the stock is trading at $13.75 and the warrants are trading at $10.00. assume the stock goes up $5.00. the stock moved up 36%. the warrants are now trading at $15. the return is 50%, or 28% greater than the common return.
the return amplification effect is a double edged sword, though. you lose a higher percent relative to the common if the stock price declines.
fyi, the common and warrants each have their own market. sometimes the price difference is less than $3.75 (usually when everyone is excited) and sometimes it is more than $3.75 (when everyone is bearish). it depends on the market dynamics of each market.
psssssss - assuming all goes well, i will buy nfli in in early october with the cash portion of my account. a few days before eps is released, i will go on margin and double my nfli regular account position.
shortly after eps is released, the most important question on my mind will be whether to quit my job or not :-) |
