HH, yes, I am tired after running after the 10 bagger. However, I do think that KO Nov 70's should be a home-run. Of course, it is a BK play. BK or not, you should be able to make some money in them. The other one to my liking is BSX (thanks to tippet for reminding me about this one.) These guys are putting a carrot at the end of the stick - a potential FDA approval of heart pacers. If it doesn't it will crater. If it does, it will get sold off on the news. 80 times earnings and less than 20% growth is not a good combination. Besides, they are vulnerable as they have tumbled twice in 1997.
The second one I am looking at is LLTC (I haven't studied this enough.) I just covered my short for ~5 point gain. But, my take on this is that the growth rate in cell phones and communication equipment has to hit a wall. We all know PC sales are in the dumpster. With ADI hitting the fan recently, and now that JBL says that a slowdown is imminent, I am willing to bet that LLTC is about to disappoint, if not now the next quarter. A 30 PE is a luxary and 37% gross margins are vulnerable. They have a P/S of 11 - unsustainable in a down-trend. However, most recent quarter profit growth was an impressive 38%. In general, they are well managed. But so is ADi.
I think Cisco has achieved a triple top, each time with much lower volume than the volume at 70, the previous breakout. I am going to re-enter this one.
I am very very suspecious of AAPL numbers for the last 2 quarters, much less buying their turnaround story.
-MMV |
