Jiesen tries to take over the world

[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]

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)

[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]

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]

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]

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.

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

[jiesen]

Bought OFG

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.

[spikefader]

I'm thinking MRK may still be a good short.

It's hard to deny the monthly and quarterly bear flag for it. Price is breaking down from it.

[Websman]

Yeah, well Cashmaker is buying shares by the truckload now. . . .

I'm thinking MRK may still be a good short.

[New-born baby]

Cashmaker

Ok, so I was wrong! I just sold out at $28. Too bad I didn't get back in from lunch 10 minutes earlier, or I would have sold it then.

253M for one heart attack without evidence? They're screwed.

We're screwed, too. There won't be any new medicines for another 50 years, I bet.

Yeah, well Cashmaker is buying shares by the truckload now. . . .

[spikefader]

Weekly channel long today. Technical buy opp at the inverted SHS and neckline break at $28.10.

[jiesen]

Ok, so I was wrong! I just sold out at $28. Too bad I didn't get back in from lunch 10 minutes earlier, or I would have sold it then.

253M for one heart attack without evidence? They're screwed.

We're screwed, too. There won't be any new medicines for another 50 years, I bet.

[jiesen]

Hey Jiesen!
Cashmaker been taking lessons from you? Did you see his latest?

Here's a slice for your enjoyment:
********
Watch out MRK, Vioxx case negative result from Jury. May tank a lot. Maybe it is a good time to buy after its tank.
********
What do you think?

http://biz.yahoo.com/ap/050819/vioxx_trial.html?.v=4

See? The jury is actually considering the evidence, and if they do that, rather than just consider a widow's grief to base their decision, it must be a verdict in favor of MRK. So, there's no verdict today, no MRK tanking...

We'll see what happens next week.

[New-born baby]

Options expiration day

No I didn't...thx

Doug,
As you know, very volatile day this one. I look for some serious red today. Monday will be green, (I hope), but this one looks red to me at 4:49 a.m.