Again, there is someone out there who has, or thinks they have some type of damaging information about the company. Today, beginning around 10 AM, Pru Bache started buying the Feb 50 puts in 50 lots. They bought a few hundred of them. Then other put buyers came in and bought the puts at up to a 50 volatility. What scares me is that they started doing this while the stock showed no big sellers (in the early morning), and then continued throughout the day. Obviously, they were right, even if only for today. There seemed to be a buyer out there in the stock, once it got below 38, but since he was buying the stock on his bid (very easily), he continued to step down. I can't imagine the earnings being bad, but something must be out there for these put buyers to be as agressive as they were today. Go to the Philadelphia Stock Exchange site at www.phlx.com and look at the volume of the puts today. The only saving grace is that the stock is already down so far, that even if there is bad news, it shouldn't hurt the stock price that much more. If the stock opens down on earnings shortfall tomorrow, I will be a buyer. Any thoughts out there??? JM
I've read the earlier posts and agree that if indeed earnings are bad and the selling was by one or more insiders, that there ought to be an investigation. Has anyone had experience bringing matters of this type to the attention of the FCC? Pardon my French but it really pisses me off when others take unfair advantage of their advance notice to lock in tidy profits and screw everyone else.
You are correct, it pisses me off too, since I am on the other side of some of their trades. I have tried before, but had no success at getting anyone to investigate this type of activity. I wish I knew a way to do it, especially if, as I suspect, some type of bad news is out there. I even called the company today and tried, unsuccessfully to talk to someone in investor relations, to alert them to the unusual activity in the options with the hopes that they will follow up to see who the actual put buyers were. The only problem was, the investor relations person, Ron Jasper, was "on a conference call" and would call me back, and when that didn't happen, I called again, and was told he was "in a meeting". Somehow, I feel like he was trying to avoid talking to me... but, maybe I'm just cynical and suspicious! I guess we'll just have to wait until tomorrow to see. JM
BDX is counting on Latin America for sales growth...The Brazilian economy is key. Lot of people are nervous about that!
Look for BDX to meet earnings expectations tomorow..maybe even fall a penny short, but the real concern will be lackluster revenues growth. They'll never get the annual sales to 6B by 2003 as promised! The street won't like that!