I'm not familiar with any of those companies, Barry. I think I've heard of PPD, and that it seems overvalued. The other companies are making money, and their P/E's don't seem awfully high, even if the companies are near the top of their price range.
There are probably better shorts out there. Unfortunately, it's not just a matter of intrinsic value, but psychology. Shoot, that's why CDRD is so high. I bought some puts on PG, and wonder why it's selling at a P/E of 31.6. I already made a fair amount on KO puts, and it's getting close to being time to buy some more. I also made money on EGRP puts, selling my last 5 contracts today.
Lately, I seem to be doing much better on shorting and buying puts than on my long picks, on which I have been losing money.
I haven't chosen my next short "victim" yet, but I think LAMR is a good candidate. I bought puts on it, and might check to see if shares can be borrowed. Of course -- I know you don't want to hear this -- but Candle Stick makes a good argument that I should stick with my short on CDRD for a while. I don't know about it hitting 8-11 as he's calling for, but I think it could hit 14 in the near term, and that would double my profits from where they are now, as I shorted at 20.
Good luck. |
