I dont see value in writing the 2.50's, that would be taking a loss on the first batch.
Remember
when I mentioned why I dont do CCs? This is an example why..you either
get called out of the good ones or stuck with the bad ones..
I
would rather calculate your total basis and wait for the stock to come
back or even wait to see if you can try the 5's later. I definately
wouldnt buy back the 5's unless you wanted to sell the stock.
0
Grinder,
I dont see value in writing the 2.50's, that would be taking a loss on the first batch.
Remember
when I mentioned why I dont do CCs? This is an example why..you either
get called out of the good ones or stuck with the bad ones..
I
would rather calculate your total basis and wait for the stock to come
back or even wait to see if you can try the 5's later. I definately
wouldnt buy back the 5's unless you wanted to sell the stock.
lcc has bottomed out and i am now going long . the stock has lost half its value and any good news will send it up 5 bucks and you are pretty much downside protected.
0
lcc has bottomed out and i am now going long . the stock has lost half its value and any good news will send it up 5 bucks and you are pretty much downside protected.
Stock price 10 (within a buck of the 52 week high)
Price to Sales 9.74
Price to book 7.05
Float 87M shares
Outstanding shares 105M
Other comments-
HUGE increase in sales from 2006 to 2007. Margins in 2006 were 76.7% (Cost of sales were 23.3%) in 2007 margins were 77.9% which is positive. A huge negative is that SGA expenses are over 60% of sales. So even with awesome gross margins, the company has -20% operating margins.
The stock doesnt have earnings, but I dont get the feeling even with the high P/S and P/B ratios that this stock is bloated and overpriced..
It isnt a buy for me..based on some number crunching, in order for the company to make positive earnings, they would have to increase top line numbers by between 30-40% (they are -20M operating margins, they have gross margins of 77% and I imagine that with every increasing dollar their SGA expenses go up too..so that 30-40% might be light). Plus the industry they are in doesnt thrill me investing wise.
Let me know what you think of my comments.
0
A few comments about OPSW-
Stock price 10 (within a buck of the 52 week high)
Price to Sales 9.74
Price to book 7.05
Float 87M shares
Outstanding shares 105M
Other comments-
HUGE increase in sales from 2006 to 2007. Margins in 2006 were 76.7% (Cost of sales were 23.3%) in 2007 margins were 77.9% which is positive. A huge negative is that SGA expenses are over 60% of sales. So even with awesome gross margins, the company has -20% operating margins.
The stock doesnt have earnings, but I dont get the feeling even with the high P/S and P/B ratios that this stock is bloated and overpriced..
It isnt a buy for me..based on some number crunching, in order for the company to make positive earnings, they would have to increase top line numbers by between 30-40% (they are -20M operating margins, they have gross margins of 77% and I imagine that with every increasing dollar their SGA expenses go up too..so that 30-40% might be light). Plus the industry they are in doesnt thrill me investing wise.
Low retail float. 70+% held by tutes. 20+% by insiders. More short shares than total retail. Significant growth (+60% per year). Just had 1st profitable quarter. Industry leader and accolades. Selling to Fortune 100 IT. Marc Andreesen from Netscape at the helm
but the main reason is simple wallstreet very high prob of m + a activity. Look at all the calls for the next few months compared to the puts something big is going on here and they just recieved an award as having the best server technology in the industry. Personally i think this company has lots of room to run your pts are valid but this is a buy for me because i think insiders know something and something is gonna happen here.
0
Low retail float. 70+% held by tutes. 20+% by insiders. More short shares than total retail. Significant growth (+60% per year). Just had 1st profitable quarter. Industry leader and accolades. Selling to Fortune 100 IT. Marc Andreesen from Netscape at the helm
but the main reason is simple wallstreet very high prob of m + a activity. Look at all the calls for the next few months compared to the puts something big is going on here and they just recieved an award as having the best server technology in the industry. Personally i think this company has lots of room to run your pts are valid but this is a buy for me because i think insiders know something and something is gonna happen here.
If you choose to make use of any information on this website including online sports betting services from any websites that may be featured on
this website, we strongly recommend that you carefully check your local laws before doing so.It is your sole responsibility to understand your local laws and observe them strictly.Covers does not provide
any advice or guidance as to the legality of online sports betting or other online gambling activities within your jurisdiction and you are responsible for complying with laws that are applicable to you in
your relevant locality.Covers disclaims all liability associated with your use of this website and use of any information contained on it.As a condition of using this website, you agree to hold the owner
of this website harmless from any claims arising from your use of any services on any third party website that may be featured by Covers.
Hot Forum Topics
