Berney; RE:" SLE "
SLE: accumulate 1x40/2x30/3x20, but ill-advised; it's a Sunbeam; Great short, but slow - will take quarters to die... sell LEAPS.
>From a FA perspective, I would want to know what caused the current negative earnings per share, and that management is adequately dealing with the issues...
Product lines now culturally irrelevant; Packaging costs more than contents; Distribution channels archaic - the issue for management is finding new jobs in an industry that has potential for growth.
>look at the daily charts of DIS, GE, S and UK. In fact, it looks to me that the aborted breakout of BA is even still intact...
I believe that this is a long-term investment buying opportunity (for blue-chip stocks). Friday felt kinda like 12-JAN-98. However, possible that the next buying op will be another -9% lower on the OEX, (either real soon now or, in ~2 quarters) so I would recommend equities rather than LEAPS, until growth is evident; and a 35% max exposure to stocks, to a conservative investor, as follows: 40% MSH.X, 30% DRG.X, 20% RLX.X, 10% NF.X
Were I a professional MM (with conservative clients, 35% invested, etc.) I would buy these four sectors right now, and spend my time managing the returns on the 65% cash (time deposit, income) accounts.
Take a look at GM, Berney. The weekly chart shows a Head & Shoulders formation with neckline 67 - head 77 = target ~57. The daily chart shows another H&S with neckline ~69 - head ~74 = target 64, which it just hit on Friday. It is likely to bounce and struggle up towards ~70 strike, where it may be a good candidate for a long-term short.
-Steve |
