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


To: E_K_S who wrote (40534)12/15/2010 5:44:24 PM
From: Grantcw  Respond to of 78680
 
Yeah, I've been revisiting SVU and added my 2nd leg of a position today. I agree that the calls aren't at a high enough premium yet compared to the potential bounce back to a reasonable valuation in the common stock in the short and medium-term.

I'm just surprised this company has revisited lows. I guess there's a possibility of bankruptcy, as in any company, but it seems like with such strong cash flow, lines of credit, and assets to sell, that they have a wide margin of safety compared to their stock price drop.

Thanks,

cwillyg