Doctor Jack's Stock Medicine

[skiracer]

Folks, take a look at Blue! It has fallen 30% in the last 2 weeks, but it trades at 6 times 2007 earnings growing at 20%+. Am I missing something here?! Thoughts/comments?

I hate those very low volume stocks. Doesn't take much to move them an if it's down then it's even worse. Only trades about 14000 shares a day. Also stopped a buyout of Long Rap. I heard some rumors about this stock awhile back that their store in San Francisco isn't going over well and they just opened a 2nd one in Frisco.
Do you really mess with these low volume issues?

[Jack Haddad]

Nem

Bought 5 blocks of NEM at 46.31, and wrote 500 Nov 45.00 calls at 2.05/contract. Company reported revenues this morning that surpassed expectations by 70 million

Sold 5 blocks at 46.62 and covered 500 Nov 45 calls at 2.20/contract for a net profit of 16 cents/share times 50,000 shares.

[Jack Haddad]

Blue

I hate those very low volume stocks. Doesn't take much to move them an if it's down then it's even worse. Only trades about 14000 shares a day. Also stopped a buyout of Long Rap. I heard some rumors about this stock awhile back that their store in San Francisco isn't going over well and they just opened a 2nd one in Frisco.
Do you really mess with these low volume issues?

I don't share your fears... Besides, I don't understand why the stock has fallen from $4.9. Maybe insider knows something? But that's just pure speculation. I dont see major insider selling http://finance.yahoo.com/q/it?s=BLUE none-open market purchases

[skiracer]

I don't share your fears... Besides, I don't understand why the stock has fallen from $4.9. Maybe insider knows something? But that's just pure speculation. I dont see major insider selling http://finance.yahoo.com/q/it?s=BLUE none-open market purchases

Are you considering a purchase? If you go in with a block of two that amount of shares should certainly drive the price up on the trade.

[jiesen]

Folks, take a look at Blue! It has fallen 30% in the last 2 weeks, but it trades at 6 times 2007 earnings growing at 20%+. Am I missing something here?! Thoughts/comments?

Maybe the 2007 earnings projection is wrong? Just a possibility... It may be trading 30% below last month's price, but it's still 8x what the company is worth in book value. If it is making as much money as the analysts think it should, then it's probably a great value, but if not- watch out. It's a tiny company, and there are basically just 3 stores in NY and LA. If I were considering investing, I'd probably just visit one of the stores near me first, and ask the manager how sales are doing. If you base your decision on that, and you should do fine. (Maybe someone IS doing that. It could explain the recent drop.)

[Jack Haddad]

Intc

Added 8 blocks of INTC at 20.41, and wrote 800 Nov 20 calls for .60/contract. I couldn't resist the intrinsic value remaining.

[Tatnic]

I don't share your fears... Besides, I don't understand why the stock has fallen from $4.9. Maybe insider knows something? But that's just pure speculation. I dont see major insider selling http://finance.yahoo.com/q/it?s=BLUE none-open market purchases

well...I happen to own a little of this and wish I didn't. I completely forgot about it until you posted just now. Its a small position because its a speculative issue so frig it. Their biggest problem is that their cash flow is horrendous...they're losing cash at an exponential rate every quarter. That most likely explains the stock getting cut in half since they "graduated" from the bulletin boards back in June. I bought this on someone else's recommendation and didn't bother checking the fundies. Stupid move on my part. I just pulled up their cash flow statement and its an abortion...check for yourself.

[Jack Haddad]

Amd

Bought 6 blocks of AMD at 20.85 to 20.87, and wrote 600 Nov 20 calls at 1.25/contract.

[Jack Haddad]

Yhoo

Bought 5 blocks of YHOO at 26.14 to 26.16 and wrote 500 Nov 25 calls for 1.45/contract. I couldn't resist the remaining intrinsic value.

[Jack Haddad]

Amd

Bought 6 blocks of AMD at 20.85 to 20.87, and wrote 600 Nov 20 calls at 1.25/contract.

Sold 6 blocks of AMD at 20.95, and covered 600 Nov 20 calls at 1.30 for a gain of 4 cents/share times 60,000 shares.

[Jack Haddad]

Intc

Mr. Bernstein comments this morning in regards to INTC’s loss of market share in the notebook segment to rival AMD, slowing demand and competitive pricing, and negative third-quarter earnings announcements and below-normal guidance for the fourth quarter is unfound!

Mr Bernstein out to be advised that on October 19 2006, in an interview with Capital Research at 9:00AM, INTC CFO Mr. Bryant specifically said that the notebook segment will not be an issue of market share loss to rival AMD.

Moreover, as to the 3rd quarter earnings issue by INTC on October 17, 2006, here is what the company has released: “The Silicon Valley Company said revenues were $8.7bn, ahead of analysts’ consensus of $8.6bn, while profits of $1.3bn or 22 cents per share were ahead of analyst expectations of 17 cents. Analysts had been expecting profits of $1.01 billion, or 17 cents a share, on sales of $8.62 billion, according to a survey by Thomson Financial.”

I only wish that industry analysts would practive evidence-based analysis of the companies that there evaluating. Slandering or discounting a compnay’s prospects is a vecious gesture.

[Jack Haddad]

Yhoo

Bought 5 blocks of YHOO at 26.14 to 26.16 and wrote 500 Nov 25 calls for 1.45/contract. I couldn't resist the remaining intrinsic value.

sold 5 blocks of YHOO at 26.64, and bought back the Nov 25 calls at 1.80 for a profit of 13 cents/share times 50,000 shares.

[Jack Haddad]

Intc

Added 8 blocks of INTC at 20.41, and wrote 800 Nov 20 calls for .60/contract. I couldn't resist the intrinsic value remaining.

Sold 8 blocks of intc at 20.70, and covered 800 Nov 20 calls at .80 for a profit of 9 cents/share times 80,000 shares.

[Jack Haddad]

Dia

Shorted 2 blocks of DIA at 121.64

[Jack Haddad]

Yhoo

Bought 10 blocks of YHOO at 27.00 to 27.02, and wrote 1000 DEC 25.00 Calls at 2.55/contract. The intrinsic value of 1.50 calls for a great hedge! YHOO is a recovery story and a likely takeover candidate.