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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (41487)	3/20/2001 5:22:14 PM
From: ajtj99	Read Replies (1) \| Respond to of 56537

Max, I haven't had time look at that one, as it is a busy day for me. I'm nearly all cash right now, but not too smart. I got goofy and sold my QQQ April 46 puts at 1.35 yesterday just before short covering (in at $2.18). I figured I'd be able to buy in cheaper on Wednesday. I just did not calculate the extent of the short covering yesterday. I can buy back my QQQ's tomorrow at a discount, so it's not such a bad deal.

To: LTK007 who wrote (41487)	3/20/2001 10:33:20 PM
From: ajtj99	Read Replies (1) \| Respond to of 56537

Max, the chart may look bad, but at first glance, the fundamentals for APW don't make a great case for puts at this level after today's drop. They need cash, and I assume they can get that from the bank or slow down their payables. They also will have some retained earnings this quarter. They are trading near book value, and their P/E is conservatively at about 15X 2002 reduced earnings (if they warn). They could go to 14 or 13 maybe, but you've got the good play being in today. The downside from here is minimal. I think their stock price already reflects an expected warning after their earnings. That said, I'm seeing stocks like ISSI trading at insane levels, so if this stock is lopped together with some of the other equipment people, it may drop to 10.