THREAD
Since last night I have read over 400 CPQ post. Except in two or three cases, most contributors concentrated on how they've been wronged. Lets see, we're quick to comment on bad management, the 'big guys' who run the funds, anxious to initiate class action law suits, compare CPQ to other companies which have completely different strategies, etc., I'd much rather see what we can do to bail ourselves out of this mess by initiating DAMAGE CONTROL.
Everyone who has the capability of commenting on this thread must be considered at least a semi professional investor. If not, you should be using a full service broker. Listed below are considerations for next week:
A. Recognize that the person who sold you CPQ was smarter than you are.
B. Establish a repair strategy. Decide if you will continue to remain in CPQ. Determine if CPQ still has a future based on overall market conditions and fundamentals. Strongly consider the impact on CPQ if the market takes a 400+ point hit. When done, determine if this is an entry point where you can average into a new position?
C. Supplement your position by looking at short puts or covered calls. Estimate when CPQ will be going back up. Look at the fundamentals. Look at the previous interest. 20Mil shares daily! Someone is doing their homework.
D. Learn to identify with the market movers. Study their movements. If you are a member of SI, you should know how to research and network.
While many on this thread have a dull pain in the pit of their stomachs which will ruin their weekend, consider this as a lesson learned by doing. Hope these kind of losses don't happen again. In summary do your research, establish a strategy by averaging down, enhance your position with short puts or covered calls, share your information with others on this thread, or completely sell out and go fishing.
Mike Gordon
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