SNDK
Money is flowing out of this sector and there is some negative press.
P/E at 35 with growth slowing from 3 year average.
I peg max possible price for this stock at $73 but today I think I will buy the December 65 put for $6 and sell the December 55 put for $1.75 for a net of $4.75 and a break even of $60.25 and a max profit of $5.25.
I will make another post with actual pricing.
OK, this is a another really good one:
AIG Blames Accounting ErrorsFor Restatements, Delayed Filing
By WILL DALEY DOW JONES NEWSWIRESNovember 9, 2005 8:19 a.m.
Sell right? That’s where the herd is heading down $1 in pre market.
Nobody reads is the problem:
AIG believes the errors resulted in an understatement of previously reported retained earnings as of June 30 of about $500 million.
If I were a daytrader, I would certainly think about looking for a bottom at the open for a quick in and out.
Since I am not, I will just watch this closely – who knows how “retained” earnings will affect actual profits but this is certainly nothing worth panicking over – let’s hope people do!
I would call $64 an inflection point on this stock, if it bounces off that it could make another run at $72, especially with a lot of money flowing into this sector!
Great Housing Article
I have nothing to add to this, this guy is dead right (and he was great as Freddie Kruger)!
BusinessWeek OnlineDon’t Let Housing’s Seasons Scare You
http://biz.yahoo.com/bizwk/051109/pi20051194228_pi001.html?.v=1
