MFLX ==> The Exelauno Day Winner

[Lyehopper]

Here is my trend read on MFLX for what its worth. Starting with the monthly this stock has been trending and remains in tact. I due note a tweezer top forming and a possible reversal off this months close. The tweezer top flags caution longs.

The weekly chart is at a major juncture IMO. If the lows from three weeks ago are taken out this would not be a positive for the bulls. Weekly also has a descending triangle look about it as well.

The Daily is in jeopardy here if it takes out the 3/31/06 low I’d change to bear mode on this one.

So lets recap:

Monthly possible reversal
Weekly descending look, major juncture
Daily in jeopardy could not put in higher highs.

My bias is leaning toward Bear on this stock based on the above. This puppy needs to bounce here for the bulls sake…

What a dead-nuts-right-on-the-freakin-money call this was! HUUUUGE post Runner HUUUUGE!!!!

[spikefader]

[Lyehopper]

Another Huuuuge Post!

MFLX is in a descending triangle pattern. If MFLX breaks the neck at $56.81, it seems that MFLX is going to pullback to $47 before it proceeds higher. It has temporarily lost momo. Remember, MFLX must close below $56.81 to make this pattern valid. The Point and Figure chart has already concluded that MFLX is headed South for awhile.

EDIT: MFLX down over $1 in premarket. She's headed South for a week or two.

And this one too!!!! WOW! I feel much safer being surrounded by you fellas.... SERIOUSLY!....LOL!!!!

[spikefader]

Yep, Runner and NB, nice reads!

[New-born baby]

Dog time

This dog almost reached the target in the first five minutes after hours of trading. $47 may be quite optimistic now. Maybe $37 or lower . . . .

[Lyehopper]

Didn't see your chart Spike....hehe

Yep, Runner and NB, nice reads!

Your's too buddy! HUUUUGE!!!! One day I'm gonna make some $$ by payin' attention around here!....jejeje

[New-born baby]

Your's too buddy! HUUUUGE!!!! One day I'm gonna make some $$ by payin' attention around here!....jejeje

When that happens, PARL REALLY goes to the garbage dump, then! Are you the only buyer of its stock? All the rest are short coverings

[Lyehopper]

When that happens, PARL REALLY goes to the garbage dump, then! Are you the only buyer of its stock? All the rest are short coverings

Funny.... very funny....jejeje....errrrrrrrrrr

[New-born baby]

Not a complete loss

The good thing about MFLX is that it has an option chain. Those HUGE types who hold this stock can sell calls on it and have some income until it recovers.
That chart was damaged tonight, and it appears that $47 would be optimistic. I am looking for about $37 now. . . .

[New-born baby]

Is this the problem?

Hey, you FA people out there: can you tell me if this is the problem?

In accordance with the company's policy to provide earnings guidance for
the upcoming quarter with the reporting of its quarterly financial results,
Harding said that M-Flex expects its net sales for the third quarter ending
June 2006, to range between $126 million and $136 million and net income for
the same period of between $12.2 million and $13.6 million. Harding further
announced that due to regulatory requirements in Singapore pertaining to the
use of guidance during an offer period, M-Flex has concluded that it must
temporarily suspend its guidance policy during the remainder of the MFS offer
period. "Due to the Singaporean regulatory requirements, we will temporarily
put on hold our policy of providing quarterly guidance until the offer for MFS
shares is either completed or terminated. We look forward to resuming our
established guidance policy as soon as possible and expect to be able to do so
for the second quarter of fiscal 2007," Harding said.
The company further announced that during the offer period, it is required
under Singaporean rules to include as part of the offering documents in both
Singapore and the U.S., a review report from its accounting firm, which will
be also be included as part of the Quarterly Reports of Form 10-Q filed by
M-Flex. The company does not intend, however, to continue to provide these
review

[sisterwin2]

OH MY........ I dont understand all what NBB just quoted but I see MFLX taken a big dump.

sure wish I had a better understanding of options. would love to cushion my lost.

[New-born baby]

OH MY........ I dont understand all what NBB just quoted but I see MFLX taken a big dump.

sure wish I had a better understanding of options. would love to cushion my lost.

Sis,
Real simple. SELL a long term call on MFLX and you'll get your money back.
I'll post a possible play for you. You'll need to sell a call for every 100 shares you own to crawl out of this mess. Unfortunately, I don't think MFLX is done falling--I could be wrong, and I hope I am wrong, but I doubt it.

[df21084]

Nbb

So, which call would you sell? Nov06? How do you determine which option to sell?

And what about fractional shares (ie: 250 shares). Would I sell 2 calls or 3?

I need to understand this.

[New-born baby]

Options

So, which call would you sell? Nov06? How do you determine which option to sell?

And what about fractional shares (ie: 250 shares). Would I sell 2 calls or 3?

I need to understand this.

An option is for 100 shares. So you could only sell 2 contracts, or else if you sold 3, you risk having to cover than contract.

The option chain is not rich enough to cover this fall. It is greater than 20%, and is going to be very, very ugly, I am afraid.

I guess I would play it this way: first, we need to determine the target price for MFLX. Initially we said $47. However, this bear flag of $11+, according to Dow Theory, says that the secondary target must now be lowered to $36.

Secondly, after the true target is determined, about the only way out of it is to sell short term options and hope that it climbs again. Alternatively, you could buy several puts. But you are now throwing more money into the hole.

I'll post another strategy soon. Strikes and everything. I need to let the dust settle on this one a little bit.

[df21084]

Thanks.

Thanks NBB. Your posts are appreciated.

I might just exit this position and look elsewhere for a better opportunity. Then again, I haven't lost anything until I sell, at least in theory.

BTW, this drop is just a minor blip on the radar, so far as my total portfolio is concerned. So I'm not freaking out about it. Rather, I'm trying to understand the whole options thing.