Jiesen tries to take over the world

[jiesen]

I may consider some OFG myself this week. How can you turn down a bargain like that?

You can't! See, the CEO of OFG thinks so, too. He just bought last week, at nearly the same price I did:

http://www.snl.com/Interactive/html.asp?F=1912753.HTML&T=OFG&Y=4&D=8%2F25%2F2005&S=1&V=DMZ2

Now if the CEO buys stock in his own company, shouldn't that give you at least some sort of a clue that it's a bargain? Just looking at the balance sheet, you can see it's trading below book! C'mon, this is not a bank about to collapse. The CEO is putting up some of his own money to say just that.

[New-born baby]

Gennetech

Hey Jiesen!
You know your drug stocks. What do you think of Gennetech. They have a lot coming in the pipeline. Looks like a future winner. What think ye?

BTW, not only is Fording Coal hotter than a firecracker, but so is Arch Coal. I bought a load yesterday at $60.64 and sold the Oct $60 calls for $4. Its a great stock . . . a divy, and now if it would just gradually rise to $63.65 and stay there . . . I could keep the call and the stock I think it will get called away.

[jiesen]

Congrats on the coal success, NBB. I wish I'd taken your tip and switched out of ARLP into FDG, but hindsight is 20/20, and I'm sure coal will continue to be very profitable for both of these companies going forward.

Yes you could do worse than DNA. It's not exactly my kind of company, since it's a little late to be buying it, now that all of its success is laid out on the table. It seems a bit expensive to me, but then again, it always has, and as it turns out, there's never been a bad time to buy DNA. It's one of just a few biotechs that made it into a full-fledged pharma co. There's a myriad of products they have on the market, which also makes it tougher for me to guage its value, but I know they're growing like crazy, and hiring everyone in sight around here. I'm pretty sure that it's a lot more fully valued than some companies, which I am trying to seek out. But if you want a steady profitable drug company, DNA could be just what the Dr. ordered. Just remember, that like any other drug company you could wake up to see it down 30% on some terrible news about a recall, or a failed trial. So if you want to be smart about it, wait until AFTER one of these announcements to pick the stock up on the cheap, rather than buying it before and regretting your decision a month later.

[New-born baby]

Aci

DUH! Another bone head move. . . .
I sold the calls on ACI at $4. Should have waited until today even. Now selling for $4.70

[jiesen]

DHB follow-up

Well, just looking at book value and earnings, I'd say $3-4 would be a pretty safe entry for this one, since you have $2 in book and $0.7 EPS and growing. I'm sure it's really worth quite a bit more, though, as long as those earnings materialize as they're supposed to- but look what happened to BEL- there may be things you don't know about coming down the pike. I'd say if you don't like the CEO, then find a company whose CEO you do trust before putting up your money- or at least wait for a price damn near BV before you buy. Just remember that even the book value is potentially at risk- just look at ABRXQ today. $100M in BV as of the last statement, and a $5M market cap now- perfectly justified, too!

Hmm, looks like that "thing you don't know about" just came to the surface there, Webs.

http://biz.yahoo.com/ap/050830/dhb_industires_zylon.html?.v=2

$4 may be here sooner than we expected. Not that I'd think about buying it in light of the latest development... (Maybe at $2-2.5 though)

[Websman]

Hmm, looks like that "thing you don't know about" just came to the surface there, Webs.

http://biz.yahoo.com/ap/050830/dhb_industires_zylon.html?.v=2

$4 may be here sooner than we expected. Not that I'd think about buying it in light of the latest development... (Maybe at $2-2.5 though)

It might not be a bad plan to short DHB to that level.

[jiesen]

It might not be a bad plan to short DHB to that level.

Careful, though. Just because it could go that low, doesn't mean it will. There are a lot of better short opportunities out there, imo. But I do have to agree, if you must play DHB right now, short is the way to go- but do it with a tight stop, and if you make a quick buck off of it, take it quick and run. I think there's still some value to this company, and it could come roaring back anytime.

[Websman]

I just doubled up my position in OFG (to about 3% of port now) at 13.2. I may be overweighting myself in bank stocks (OFG, FRGB and CIB now are over 6% total portfolio) but I justify it with the slew of insider purchases of OFG over the past few months, the nice dividend, and a $2/shr EPS. If it drops any further, though, I'll admit I'm wrong and cut my loss at 12 or so, but I think OFG is finally showing a little life here, and probably has found bottom at 13. Besides, my other options (I was thinking about picking up more CMTL or AMLN) have already run away from me, and I don't want OFG to get away, too.

I just joined you in OFG. I couldn't resist the bargain price and the upcoming dividend!

I had to take my profit on NGPS to buy OFG, but it's looking like it may pay off.

[dmk112]

Why in the world would you guys consider OFG? jeez what a loser..

[Websman]

Why in the world would you guys consider OFG? jeez what a loser..

Watch and learn.

[jiesen]

Hmm, maybe I should have held on to MRK after all...

MRK seems to be shrugging off that $253M verdict like it's nothing. Check it out:

http://finance.yahoo.com/q/bc?s=MRK&t=5d

I guess the market expects them to come out of this all right after all. Go figure.... Well, that verdict, while likely to be overturned and/or reduced still makes it just too risky a bet for me to take. Oh well, at least I managed to get out of it with some profit intact.

[New-born baby]

Percentages

Why in the world would you guys consider OFG? jeez what a loser..

DMK:
Well, OFG was selling for $13.30 earlier this week. It is now a $14 stock.
If you had picked up 1000 shares, you are looking at $700 in one week. And it'll probably see $15 before Sept 28. And the stock is cheap.

Need more reasons? Here's the chart: don't short this one.

[jiesen]

OFG chart

I'm glad to see that the TA aligns with the FA on this one!

[Websman]

OFG goes up again.

[dmk112]

OFG may go to 15 and that is when I will short it