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There was a time when no good news could have moved this stock. Since last summer and up until the end of the year. When I bought into this at 5, some people thought I was acting crazy. They thought the same as Michael kept adding to his stake by percentages. My Crystal ball showed me where the stock was going to be in the future three times successfully during this period. First, when the stock was at 5, I predicted it would be 7 1/2 on the fifteen of next month. It did close there one month later. It did go higher and reach 8 7/8 (which I didn't predict) but I wrote that it will be back to 7 1/2 in consolidation (I had sold half my position at 8 3/8). I bought back this half at 6 where the stock landed after the warning on earnings. Then I predicted it will be 6 1/2 after earnings announcement and 7 1/2 in February. Both predictions materialised. HOWEVER, I WASN'T ALWAYS RIGHT WITH MY PREDICTIONS FOR borl. I started buying this stock at 15, added to my position at 12 and 8 or 9, respectively.
So, I am still underwater a little bit. But the stock seems to be on a roll now. Any good news and it moves up with a very large volume. I am predicting the teens this coming summer, but maybe as someone told me here we will see 10 this spring. First, however, we will have to go through the coming earnings. If these earnings look awfull, I thing the stock will hesitate part of the day (earnings day) then still rally up in the afternoon. It will be smooth ride thereafter. But, yes there is risk involded here and, as the case is always, the magnitude of the reward is proportional to the involved risk. Mark put it very well in an upthread post. This stock is indeed like an option with no time limit. Like an option, it even tends to retrace down with time, slowly, between jumps (this of course is consolidation). After BORL reach 10, I will be waiting for Dean Witter to upgrade the stock. Only then it will go to 20 and hopefully above, this time around. Ghassan. |
