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Non-Tech : Invest / LTD
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To: Peter V who wrote (3883)10/7/1998 9:21:00 PM
From: Thean  Read Replies (2) of 14427
 
KRB really took its lump yesterday in probably a pre-earning jitter panic selling. However, there were large block trades crossed by SSB yesterday between 13-14 so I believe those are buyers in the know that their current quarter is OK. The story today belongs to the DOJ as KRB is the second largest credit card issuer and any negative underlining to the industry will affect its leaders. KRB went up today because of its earning. Otherwise it would have lost another 10% today. Short term I think there will be some hungry money trying to bottom fish here but with the new outlook of a real recession in the US next year, credit card companies like KRB will suffer. How much of a drop from here noone knows. But a drop to single PE is very reasonable for KRB going forward assuming the US economy turns gloomy and we have more and more layoffs on the news. If you want to short it, ask yourself when do you expect to reap a profit, by how much, and how much risk/pain you can tolerate. This is not for the faint of heart, not when it swings from $13 - $18 intraday. Because of the wild swing, one can trade it in either direction and be expect to make some small change on any volatile day.

Since you mentioned you got lot of margin, I would urge you to think of the risk you want to take here. Never become complacent when things look too easy. If this is all play money and you don't mind risking it all, then one should go short the internuts/pharmaceuticals or go long gold.
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