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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (27177)	7/17/2007 1:02:42 AM
From: SI Bob	Respond to of 78752

It sure has climbed since then, hasn't it? I haven't sold any shares and actually bought some October 12.5 calls while they were still OTM at $0.65. Sold 40% Friday for $2.50 and rebought some of those today at $2.10. Might buy back the rest if it keeps fading a few more days. There's only a 60-70 cent time premium on this one for calls that expire 3 months from now. Mind-boggling, especially in light of the way it's shown it can sprint. This is my second-largest holding (behind our parent company) and it's a WAY larger position than what's in 3rd (probably ELN). The calls are in my trading accounts so I'm not thinking all that long-term on them and likely won't exercise them. Normally in this situation (big position with big profits), I'd be writing covered calls, but I don't like the price of the calls and what I perceive as the likelihood of getting called out of my position too cheaply. And I really like their idea of the 4th quarter dividend being a mystery amount and like the chances of it being surprisingly high. And though I haven't dug thoroughly and have no way of determining how much of their business went with their former employees, the 15-cent dividend sure smacks to me of a bit of sandbagging so they can be seen as knocking the cover off the ball in Q4.