""It's worth noting that since this post was written the Nasdaq is higher and ERTS is down 5.5%, hitting lows not seen since 9 months ago.""
--> Then it's just as "worth noting" that when I bought FWLT, BTU, and numerous others they continued to go down at first and then rebounded to valuations that are much closer to where they should be. My first FWLT buy was at $43 and my last was 15% lower than that (it traded even lower but not quite to another buy point for me, darn...)
ERTS is acting similar and will have a dramatic move up over a 2-4 month period that will begin sometime over the next 8 months. It could start next week, next month or 3-4 months from now but it's definitely going to happen. If you don't agree you can continue to short it through the end of the year (that would be really stupid though (imo)) or you could sell a ton of those $30-40 calls I mentioned in a previous post. Just hold them through expiration (Jan 08') and see what your return is. You will either have free money because ERTS will be trading less than $30 (according to some) OR you will have to buy them back for more than you sold them for because it will be trading higher (approximately $60+ IMO).
You already know what I'm doing.
Good Investing to all!!!
P.S. The NAS is down today too. The contradictory opinions currently around EA are adding to its volatility. When the aforementioned "dramatic move up" occurs it will consistently trade higher than the NAS does as well...
"ERTS is acting similar and will have a dramatic move up over a 2-4 month period that will begin sometime over the next 8 months."
You could probably say that about every single stock in the market. A dramatic move up after a move down? How far down? How 'dramatic'? I could just as easily say it will go up, or down, on some day in the future. If you're buying stocks that are dropping up to 15% soon after you buy them, maybe you're not factoring in some of the bearish arguments. You know, the ones you dismiss constantly as though they're irrelevant and inconceivable. Just a thought.