expect a choppy market for the rest of the year. mauricethepantsman, at first glance i see a gap that needs to be filled. That is why i am starting my partial buy at $25, then average down if necessary. If INTU were to retest it's low, taking position at $25 will have limited risk. However, if it were to continue to head south towards the teens then a tight stop at $22 will be necessary for safety.
That's my game plan for now, but mind you it is subject to change depending on the market conditions.
How will you approached INTU given the current scenario? Just curious.
Your question on how will I approach INTU given the current scenario can be answered this way; I will wait until the earnings are released, and if they are as I expect them to be, I will load up on out of the money call options. This is very inexpensive and if you give yourself a fairly reasonable lenght to the option, it's almost a given that you will make money. I don't own stock any more. I just buy call options. My run rate is 80% to the plus side on the options that I have purchased. That is winners to losers, and not how much money I have made on them. I will let your immagination run with that.
I also buy calls. Made good money in 99, lost a bunch in 2000. The point you didn't mention is that a call's time value will evaporate as time goes by if the stock price doesn't go up. You've gotta pick stocks that will go up enough to overcome this evaporation.
My question for you, Maurice, is how you pick your stocks to get 80% going up this fast, esp in the last year?
Also, how long is long term? Do you buy LEAPS? The time-value price you pay for longer-term safety isn't small.
I hope you all don't miss the boat. PC sales are still strong see Dell & Compaq although PC's are getting cheaper (more platforms for INTU products). Freddie Mac profits are up (more loans for INTU) Software sales are still strong see IBM and CA ( bodes well for INTU software products) and Tax it expected to hit sales of 6.5 mm units between online and box versions. I expect INTU to beat the street in core earnings (before investment income /losses). When it does I hope the market is as good to the stock price as it was during the ridiculous sell off. See you in the $40's in May.