*AV*--We loaded locked, and shot. Profits were taken and hope you did the same. I almost succumbed to that announcement drop to around $45 but it was a momentary drop. It looks like it will find a home at $50 for today. Not a bad place to be unless you are Big Brother.
BigBro-you probably are screwed and hosed but do not give up the ship. The May 50s are at 7.25 right now, eith the stock at 53.25 on an upswing. Even though I think it may settle to $50 for the day, I would not be surprised to see it dip into the high 30s or even lower before expiration. You might wind up with a minimal loss but you stand a chance to turn this into a profitable trade. Put a Good Till Cancelled (GTC) order in to sell your PUTs at 11 or 12 and let it proceed on autopilot. Just like the momentary blip down today at close to 2 pm EST, you might get a few more. Who knows, the luster may have worn off and a "foul" might be called relative to this run up and news. Beleive me, this stock has attracted the attention of the SEC and I am sure we will be hearing something on this subject. You could see a real crater back down over the next few weeks making these PUTs REAL VALUABLE.
I am waiting to be filled on some May40 PUTs on this stock at $2.50 for kicks and a hunch.
BTW-Tell me we all didn't see this one coming:
Monday May 4, 1:45 pm Eastern Time
Premier Laser named in shareholder suit
NEW YORK, May 4 (Reuters) - Premier Laser Systems Inc. and several officers and directors were named in a shareholder lawsuit alleging that the company misled investors, attorneys for the plaintiff said in a statement Monday.
The suit was filed May 1 in the U.S. District Court for the Central District of California on behalf of purchasers of Premier Laser Systems stock from February 12 through April 15, 1998, according to the law firm Stull, Stull & Brody.
Robert Valenti, a shareholder during that time period who resides in Westchester County, N.Y., is the plaintiff, according to Michael Swick, his attorney.
The complaint alleges that the defendants artificially inflated the price of Premier common stock so that the company could complete a merger with Ophthalmic Imaging Systems (''OIS''), using its stock as currency for that deal.
Shortly afterward, on April 15, Irvine, Calif.-based Premier disclosed that about $2.5 million of revenues booked in the December quarter had been disputed by a key customer.
As a result, Premier said it was considering restating third quarter results and take significant charges in the March quarter that would result in lower-than-expected results.
The stock, which had been trading around $9, fell to $5. On Monday, the stock was trading at 6-1/4, down 1/16 of a point on the day.
Premier Laser makes various medical lasers for use in dentistry, ophthalmology and other surgical procedures. |
