You've been pretty accurate on HWP in the past and have'nt posted in a while. What's your reading on HWP in the near term. Weakness has been due to a bought of distribution over the last 2 weeks, but has turned neutral Friday. Wondering if I should cut some shares loose as I keep missing the peak--greedy I guess. Actually, I think HWP is worth a lot more, but can't understand why it is not more highly valued ginen its strength and diversity. Still hangin.
As I read your message it dawned on me that you sort of porvide an answer to your own question. You say the following two things:
Wondering if I should cut some shares loose as I keep missing the peak--
Actually, I think HWP is worth a lot more, but can't understand why it is not more highly valued ginen its strength and diversity.
I think the reason the stock price is trapped in a trading range of about 62 to 66 is many others feel the same may. They get a little frustrated because the stock isn't going up so they trim back their positions. This selling pressure keeps the stock from going up. However, many other people, like you (and me), believe that HP good long term prospects so we buy on the dips and put upward pressure on the stock. These two forces keep it locked in the range.
I think as soon as the impact of Asia on HP becomes more clear, the cloud will lift and the stock will break out of its current trading range. I do not see that happening until HP's 3rd or 4th qtr., so I feel we'll have to wait a bit. My game plan is to sell 3 month calls against the stock the next time it hits 66.