Please put on IGNORE all posters who deride Avid. These hateful shorts are trying to convince investors to sell Avid. Avid is a great company with great management. Whatever they are making cashing in cheap stock options - $5 million/$10 million/$30 million - they are worth it. Avid sales are only down slightly since last year and although operating cash is negative, management was nice enough to cash in options, paying $11 million dollars of their own money for them. That's $11 million dollars in Avid's bank acount.........SWEET!
So, ignore all short posters -they're all sugarr aliases anyway..........and while you're at it........BURN THOSE BOOKS ABOUT THOMAS JEFFERSON THE SLAVE OWNER AND BURN THE BOOKS ABOUT OTHER STUFF YOU DON'T NEED TO KNOW.
Your assessment is oversimplification -- Read between the lines.
When I sell calls, they are covered calls -- no unlimited risk. Just (potentially) selling my stock for a higher price than the day I initiated the hedge (and if it is an equity I am planning to hold at the current price). If it goes up -- I make more money than if I just sold. And if it goes down, I close out both positions and temper the downside.
And why would an options specialist routinely short to offset selling options -- again -- that position opens unlimited risk.
A shortseller can buy calls to mitigate the risk of the stock rising explosively and cap losses.
<<The specialist only acts as a broker>>
no he/she provides liquidity an often takes the other side of the position...it's besides the point anyway....when you sell a call or buy a put the person on the other end (long call / short put) gets long AVID (that is to say they make $ by the stock going up). To hedge this risk they will short stock.
"So does selling calls."
Only naked calls. With covered calls you only have the underly stock to lose. When the stock is called you get paid for your shares.
When you buy an option, someone wrote the option. They are making the opposite bet you are. The specialist only acts as a broker.
<<Buy or sell options as a hedge, yes, but shorting has an UNLIMITED downside>>
So does selling calls.
<< If you want to short -- go ahead -- but don't try to manipulate the stock>>
if I buy options (puts lets say, or sell calls)....what does the options specialist do as a hedge???...Shorts the stock.
I know I'm nit-picking(sp?) but the post got 10 recs so I felt I had to.
This is interesting since it covers stations that are not O&O's.
Local news is an important revenue stream for stations since they get the majority of the advert revenue for those time slots. Look for more news aggregation in the future similar to Sinclair's model. So far I hear really good feedback from Sinclair. They seem to get all the support they need from Avid. I guess we can rule out hanlon working for Sinclair...
10:02 ET AVID Avid Tech reaches deal with NBC to extend use of systems (20.10 -0.64)
Announces agreement with NBC to extend the use of Avid's iNEWS newsroom computer system across its operations. The agreement also expands the use of Avid's iNEWS systems beyond all of NBC's owned-and-operated U.S.-based news stations to its recently acquired Telemundo facilities .
I question motives as well. I don't know what the future holds but Brookshannon(sp) is clearly taking a negative position while trying to appear objective. Is the implication that Quantel has better product and reputation than Avid? In my 20 years in the broadcast industry, I did not find this to be the case. Both have pluses and minuses.
As far as the insider thing, since not a lot of sales are showing, I can only assume that options were exercised and employeees are HOLDING the stock. That would seem to be a positive.
This stock is also holding up remarkably well in a very weak market. If the market turns around who knows what happens...
But then philosophically, I am not a big fan of shorting. Buy or sell options as a hedge, yes, but shorting has an UNLIMITED downside, with a limited upside. And there is this whole negativity thing -- shorts seem compelled to try and push the stock down by whatever means they can muster. If you want to short -- go ahead -- but don't try to manipulate the stock.
And for the record, I am not a big fan of cheerleading either. Discussing the merits of Avid's products and business model would be useful.