Thursday, February 24, 2011

Hope It's Not a Train

Could that be light at the end of this tunnel? Prices seemed to firm up a bit today. DNS -37, +15, +8.

Trades:

I bought shares of JKS and CF.

I bought an ITM March call spread on CF ($134.02). You should be able to pick up a $125/$135 spread for $6 or less that's worth $9 now and expires in three weeks. That's 50% in three weeks on a great stock ... even Cramer likes it. It's even sporting a strong reversal signal with good symmetry following a weaker one.

Other thoughts:

Thanks John for GTLS who beat estimates. Ca-ching!

RBCN holding strong.

ENTR still in search of a bottom.

CCM got away ... maybe.

Reversal alerts: (20) fitered down to:
BRCM - strong sales growth and a P/E falling from 21 to 18.
CBOU - guided up yesterday and bounced 15%. The forward P/E was 18 ... probably much lower now.
STEC - sales have been climbing, earnings will flatten out with the P/E falling from 38 to 17.
ERIC - little or no sales growth but sustaining a higher level of earnings dropping the P/E from 23 to 17.

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