LCI - Anyone adding more?

[Lucavia123]

I'm not adding but I did pick up a position in LCI today.

This selling is getting insane!

[Louetta]

I'm not adding but I did pick up a position in LCI today.

This selling is getting insane!

I agree completely. I looked at the calls around 3PM hoping to find a Leap of Jan. 2017 but nope, just the regular set (of options). Have to figure you'll make money by holding for a while and if I could leverage it with a call....

[Louetta]

Bought today. Today's action, methinks, is a combo of Biden not running (thus making Hill the presumptive nominee) and the Valeant stuff. The first may hurt if Hill wins but how much over time for a growing company. The second has naught to do with LCI. I hope.

[Louetta]

Bought at 37.34. If this isn't a buy then I'm a Dutchman.

[seabric1]

Louetta, do you have any other positions in this stock? In all seriousness, why is this a buy? What's the strategy (short term buy, long term, etc)? I get that the fundamentals are nice, but the chart is absolutely terrible. I could see this languishing in the upper 30's \ lower 40's for a while.

I bought in at 60 and I wouldn't be surprised if i had to wait 3-4 years to break even... that would be a 55% gain just to break even.

[Louetta]

Louetta, do you have any other positions in this stock? In all seriousness, why is this a buy? What's the strategy (short term buy, long term, etc)? I get that the fundamentals are nice, but the chart is absolutely terrible. I could see this languishing in the upper 30's \ lower 40's for a while.

I bought in at 60 and I wouldn't be surprised if i had to wait 3-4 years to break even... that would be a 55% gain just to break even.

Good questions. I say it's a buy for me because of the fundamentals, a PE of 9.5, revenue this quarter of 106 million vs 94 same quarter last year, adjusted earnings of $.99 vs Zack's consensus of $.89. I have no other positions but looked hard at the calls. A $40 call for this month was about a buck. Similar premiums on other options so I passed but these premiums indicate somebody thinks it's going up and soon. On the downside LCI reported to the SEC that the firm it's acquiring lost a key customer amounting to something like $80 million a year in earnings. Methinks this is why the big sell-off but existing revenues are unaffected.

I do not do charts but I would say that the charts reflect the impact of Hillary's position on hitting drug company over-charges and the general decline in momentum stocks which has affected e.g. many of Ernie's stocks. It is true that if Hillary gets in in 2017 this stock might get hurt.

As I reported in this forum earlier this year I bought calls on some company which was about to be acquired, forget who. The bid was indeed made but the stock did not go up and I was wiped out. Lost every cent. It hurts but it happens to all of us. This may not make you feel much better about being in the hole but at least you will know you are not alone.

[mrmarket]

Good questions. I say it's a buy for me because of the fundamentals, a PE of 9.5, revenue this quarter of 106 million vs 94 same quarter last year, adjusted earnings of $.99 vs Zack's consensus of $.89. I have no other positions but looked hard at the calls. A $40 call for this month was about a buck. Similar premiums on other options so I passed but these premiums indicate somebody thinks it's going up and soon. On the downside LCI reported to the SEC that the firm it's acquiring lost a key customer amounting to something like $80 million a year in earnings. Methinks this is why the big sell-off but existing revenues are unaffected.

I do not do charts but I would say that the charts reflect the impact of Hillary's position on hitting drug company over-charges and the general decline in momentum stocks which has affected e.g. many of Ernie's stocks. It is true that if Hillary gets in in 2017 this stock might get hurt.

As I reported in this forum earlier this year I bought calls on some company which was about to be acquired, forget who. The bid was indeed made but the stock did not go up and I was wiped out. Lost every cent. It hurts but it happens to all of us. This may not make you feel much better about being in the hole but at least you will know you are not alone.

Solid analysis Louetta...it's all about the earnings...and sometimes it's about patience.

[seabric1]

Thanks Louetta... I appreciate the reply. Points well taken.

For what it's worth, I'm not losing any sleep over my LCI losses. Personal investing is still a new hobby for me, so I don't have the smarts or confidence yet to play with money i couldn't afford to loose. The feeling is comparable to getting a bad speeding ticket i guess. Crappy, but not worth crying over.

In my limited experience and readings so far, I do see value in paying attention to the charts. LCI's fundamentals gave me confidence that the company was a good buy, but I didn't study the charts enough to figure out when i should buy in (or if i should at all). I sort of just pulled the trigger. I was definitely leery too because the chart never really formed a solid base and the volume never really settled. it looked very erratic. And with a beta of 1.79ish... IDK, I guess i like more conservative charts.

It's cool though... I can learn from a beatdown.

[Lucavia123]

Another 6% discount.... anyone brave enough to do it?

[seabric1]

Buy more? Whole lot of nope. I'm actually considering selling... could you imagine what would happen to the stock if the Kremers deal somehow fell through? Wouldn't be surprised if it hit the $15 - $20 range in a heartbeat.

Could it go up? Sure. My thought in selling though is that the money i have invested in this stock could be put to better use elsewhere. If it paid a dividend, then I'd keep it and wait... then again, if it paid a dividend, I probably wouldn't be in this predicament anyway.

I'll probably end up keeping it because I don't have a ton invested and I'm curious to see how the market will react to LCI IF the Kremers deal goes through.

[jiesen]

Another 6% discount.... anyone brave enough to do it?

yep, I'm getting some more here at 34.2. Figure that 50% haircut it got from where I originially liked it is probably enough to cover the loss of a customer or two. It'll come back to the 60's eventually, imo.

[mrmarket]

Bought at 37.34. If this isn't a buy then I'm a Dutchman.

Nice trade. The lady is not a Dutchman.

[jiesen]

yep, I'm getting some more here at 34.2. Figure that 50% haircut it got from where I originially liked it is probably enough to cover the loss of a customer or two. It'll come back to the 60's eventually, imo.

nearly at 14% gain now from 34.2. Just gotta figure out whether to sell those shares at 40 or ride them all the way to 60.... tough call, though!

[jiesen]

just sold the extra LCI bot at 34.2 for 39.3, and a 15% gain! If it gets back to 34 or 35 I'll probably do that again...

[mrmarket]

Alright...I just bought some March 45 calls at 3.65. Supposedly a special meeting and presentation to be held on Monday to discuss integration.