Wednesday, June 13, 2007

Why do I keep holding off from buying

The last two weeks have been pretty volatile in the stock market. Often times volatility spells opportunity.

I did add to some of my personal positions over the last few weeks (NUAN for $15.50, PCP for $116, for example). But I want to wait until mid-Jue to buy for LiveRocket. i don't like the 5 days down and 2 days up cycle and I want to see some stronger pricing direction.

In the meantime, a few interesting tidbits.
TRID - I actually think that they will wrap up the options issue this quarter, which would give them great springboard momentum going into the Fall.

PCP - Boeing announced that there is a shortage of critical parts including fasteners. PCP dominates the fastener business at Boeing. Nothing like selling products in hot demand.

TIE - Collapsing all around us. At its 200 DMA. PE is near a long term low. What I think: a lot of shorts cashed in on last month's rumored TIE acquisition. They are in a great position to keep hammering the stock but it too will pass. It's time to buy TIE calls. If you look at the open interest, you will see that calls outweigh puts by a sizeable margin. That is a bullish sign.

I continue to marvel at the irrationality attached to TIE. They dominate a key product at a time of rising demand. They have a 19 P/E and a PEG of 0.79.

RSH - This company continues to just boggle my mind. It has a rapidly shrinking share of the market and a collapsing sales picture. The only positive sign is that bleeding has been stopped by massive layoffs and store closings. That keeps the patient alive but it is still in a vegetative state. Yesterday I went to a Best Buy and a Radioshack. Best Buy had lots of customers, Radioshack was empty. I was the only customer. And the service difference was that Best Buy had tons of staff and Radioshack had one surly clerk. I just don't get it.

1 Comments:

Anonymous Anonymous said...

Goldman Sachs bought tons of RSH.

10:15 PM  

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