I never thought I would write an item in defense of steve,
but here goes. I don't think he has said that CPQ's stock
price is a great bargain. He has said that this quarter's
earnings were going to be stellar, but he's been bearish
on the stock for some time now. He is very intelligent,
has been following this stock for ever, and is
only a long-range bull on it. On the short range, he often
hints at possible down trends. He also knows when it is
relatively over-valued, and buys puts. He personally
hasn't said he bought any stock recently, and while you are
suffering through a decline, he bought something like 240 put
contracts (i.e. puts on 24,000 shares) Here's his statement:
Message 2945553
He uses the puts (and call writes) to extract cash from
short-term market swings:
I just sit tight, can't sell...but the puts ring up the cash.
Message 2942420
Recently he has felt that the stock is dangerous (and I agree.)
stephen, I would buy april cpq calls instead of stk.
this market is too risker for stk puchases.
Message 2939635
you should be in april options..it's asafer.
Message 2929351
Back when the stock was at its October peak, he was actually
bearish on it:
Steve:
Do you mean to say you think CPQ and DELL earnings estimates are
too high, and they will come in below? What about INTC?
Sam
steve's reply:
the expectations are too high..
Message 2364926
He warned a call purchaser about the danger:
good luck on continuing to option cpq.
it will eventually cost., but for now cpq is heading up.
Message 2449448
I don't know when he bought his puts, but I would guess
it was around here:
I rarely discuss any option action with cpq.
Message 2471232
since he had previously noted that he didn't have any
options on CPQ. So I guess he bot puts while the stock
was around 72. I didn't read all his posts, I suspect
he said when he did, but I don't want to go looking for
it.
But he said he was going to sell his puts this past Friday,
and that is a more bullish sign.
-- Carl
P.S. Interestingly, the percentage of gross spelling errors
and bad grammar in his posts is highly correlated with how
CPQ did that day. I wonder if my posts do the same. |
