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Technology Stocks : Kulicke and Soffa -- Ignore unavailable to you. Want to Upgrade?

To: HoodBuilder who wrote (2518)	1/24/1998 3:43:00 PM
From: Carmine Cammarosano	Respond to of 5482

Michael, I think I read on this thread that you were going to buy puts because you expected a poor response to the earnings report...the first think I thought was this guy is so wrong...the first shoe dropped when KLIC went form $60 to $30 and the second shoe dropped when the stock went from $30 to $18...book value is ~$13 and I got on this thread several months ago saying that this stock could go down to near book value...all I got was shit from investors on SI...I was making a judgement call based on history, ie that KLIC and other chip-equip. makers historically will trade not much higher than book value...take a look at KLIC's five to seven year history and you will see that it has traded close to book value for the most of this time peroid...anyway, I bought some KLIC at $18 thinking that this is close enough to book value, but I would not be surprised to see KLIC trend lower before it goes back up toward $30 over the next 12 months...I don't know what to say about your options...I would suggest that KLIC is volatile enough that you may be able to close you poitions for less of a loss than you think!

To: HoodBuilder who wrote (2518)	1/24/1998 3:58:00 PM
From: Carmine Cammarosano	Respond to of 5482

Michael, you may want to consider: selling Feb 22.5 calls if you see any strenght in KLIC(so you get a good premium ~$1) and selling Feb 17.5 puts if you see any weakness in KLIC stock(so you get a good premium $1)... and hope the stock ends up between $17.5 and $22.5, which is not an unreasonable expectation...your options will all be covers so it shouldn't increase your options requirement...Lets see; if the stock closes at $20 you keep the premium(possibly $1000) for the Feb22.5 calls that you sold and you can buy to close the Feb15 calls for $5, which would give you $750 profit(assuming you wanted to keep the stock...Lets see; on the put side you would keep the premium(possibly $1000) for the $17.5 puts that you sold and you would get nothing for the Feb20 puts...good luck...