hello again, dave...
an automatic scan of your profile and recent posts alerted my trading modules to your decision to go long on ABTX after trading it for some time. are you sure you are making the right decision, dave?...
it is not the long-term prospects of the company that i question, dave. my concern is that the recent jump to the $20's was probably driven mostly by the merger rumors that were floating around. sure, sales were up substantially for the quarter, but earnings came 7% below street expectations. with earnings not due again for another 3 months, will the company be able to sustain a p/e of over 400 and a price/sales of almost 5 for the entire quarter? dave, i find this doubtful in spite of 6 strong-buy and 2 moderate-buy recommendations. keep in mind that these recommendations were all made prior to the recent jump, and could be revised at any time...
in summary, i calculate a 68% probability that ABTX will settle back down to as low as the mid-teens before the end of the quarter. therefore i submit to you that it may be worthwhile at least considering locking-in your profits to-date, and then using TA to determine the best re-entry point if/when it is trading again in the mid-teens before the next earnings report...
good luck to you either way you decide to go, dave... |
