To: drakes353 who wrote (2294 ) 5/2/1999 2:39:00 PM From: Allen Furlan Read Replies (3) | Respond to
Drakes 353 Thanks for your reply on RS as a useful screening tool. Let me tell you how I got onto this thread and solicit your comments. I was interested in tgx because Mike Burry on the value thread believed the stock to be sound yet the price was down and the option premiums were relatively large. In the past I sold covered calls(3-6 month) and naked puts on stocks which I identified as solid value and worthy of a hedged investment, ie top down from stocks first then options when available. Several months ago I began examining stocks which had high volatility ie, very high option premiums. Most such stocks were fundamentally unsound. However several were reasonably sound and more importantly were loved by the momentum players as evidenced by the comments of the "yahoos" on the talk threads. In May I put on short term covered positions on danka,dctm,gems,hph,idtc,mi,sero strx,beam,tklc,fore,xirc and qmdc. The majority of positions are working because of the recent strong upside in the market. Having always been a pure value investor I became intrigued with the notion that momentum and semi-value could be married. I would greatly appreciate it if you could look at three stocks(idtc,sero,mi) to see if a positive change in RS occurred between the end of March and the end of April and whether there was a negative delta prior to March. These are my biggest positions. All these stocks were battered down and might of had reasonably large decay in RS. Yet when I reviewed the fundamentals at the low prices available and deemed the battering to be unwarranted. (idtc position actually begun in February). Any comments you have would be appreciated.
