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Technology Stocks : PRI Automation (PRIA)

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To: guido leone who wrote (412)5/9/1998 11:08:00 AM
From: Alan Gallaspy  Read Replies (2) of 1214
 
Guido,

I feel as you do that a lot of the downside has been deflated out of this sector. Given this, why do you feel buying calls may be a good idea? Do you think that "something to spark a run up" is right around the corner? I agree that we will need something to light the fire, and fundamentally that will be higher sales. Unless you want to go out on a limb, you will not really know that is going to happen until it is announced, hence I see a big risk in options expiring worthless unless you get real lucky in predicting exactly when the spark ignites. Of course, one might say that I am going out on a limb by holding a long position in the stock for the very same reason, that is, keeping dead money in PRIA waiting for ignition.
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