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Technology Stocks : American Power Conversion

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To: gizelle otero who wrote (2124)4/1/1999 8:17:00 PM
From: Turs  Read Replies (1) of 2574
 
While I wish you luck in making money with those calls, I do not believe you locked yourself up a fortune by any means. In order to just break even, the stock has to be trading at $35+$3.50=$38.50 in September. That would be a forward P/E of 17 (based on forward 12 months EPS of $2.25). It could certainly trade at 20X or even slightly higher. But it could also easily trade for 16-18X and has numerous times in the past. So, I doubt you'll more than double your investment.

BTW, are you saying you purchased over $50,000 of a depreciating asset (calls lose time premium)?
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