Actually there was a good article on Stockinsider about all the 3D printers. Says they have a price target of 50 for DDD next year. But they have to execute.
I am more than willing to admit that this stock is technically broken. I cannot say if its at a bottom or not, you have to have a stable market to determine that, and we don't have one. But to me, since I bought this strictly because its in a good market and is on a weekly option cycle, its a gift. I don't think its going bankrupt, and every week I sell covered calls as it sinks. This allows me to add another 100 shares a week for free to write more calls. In a month I have written off a dollar a share from my purchase price. In a year that's potentially 12 dollars a share off my purchase price. So my basis drops from 36 to 24, under where its trading at currently on continuous increases of shares held. Sure, it could shoot up, but if it does I buy my calls back and uncover the share appreciation past strike. Its not a quick return, it could fall into the teens, but my strategy doesn't really matter. As long as it bottoms at some point and heads back up and doesn't disappear its a no lose investment. now this is all theoretical and I know its not going to give me a dollar a month, but it just gives you an idea of the power of covered calls in a volatile stock with great premiums. You should check it out.
Course if I am wrong and it goes away, I lose about 500K. I am willing to bet it doesn't.
this stock is totally broken, its blown through all its short term support. But its in a great market, they seem to have good technology, and over time it has tremendous potential. Its fantastic as a covered call selling vehicle. I have already chewed off a buck from my purchase price by selling calls due to their weekly options cycle. So I am not too worried about things. I sell calls, and use the proceeds to buy more stock which I sell calls on. When they report their quarter I will by protective puts under current price just in case. I figure in a few years it will be well ahead of where its at now.
That's key, nothing like a short squeeze. But its technically weak now, and there may be further price erosion. However, its a great covered call tool due to being on the weekly options cycle. Somebody wants to give me 3000 dollars a week for a call that's 2 bucks from strike for a week I will take it all day long. So if you are long, which I am, and want to make some extra bucks while waiting its a great way to do it
That's also a great strategy, but put buying can kill any gains unless they are large. I buy protective puts right before earnings reports, and once again DDD is perfect for this because they are on a weekly option cycle so you don't have to buy one with a lot of time value, so its relatively inexpensive to get good protection.
The lesson is to buy what you understand, learn to use technical analysis, and don't buy when everyone else is. When most are dumping is when you should look get in. This board is great for that, when I see the "I got ripped off' and "its going down" comments I start to look at buying. Not perfect, sometimes they go to zilch, but its a great trigger indicator for most to start looking at going long. Also remember a significant number of posters have never owned the shares and get their jollies ticking off others while eating their Cheetos in the basement wishing they had a girl friend.
Perfect for what I own it for. I sell covered calls on my stock. Its on a weekly options cycle so I can get in some 2500-3000 a week. If it goes down, I lower my strike, if it goes up, I raise my strikes. And I use my premiums to buy more so I can sell more calls. At some point it will probably take off, at which point I will stop selling calls and let it appreciate. The chances of it going down significantly more are low as I think its based out. Since it tends to move on quarterly report, I will buy protective puts under the stock when they release their quarter. So to me its perfect.
Have to agree with you Steve, the quarterly report was not good, in fact I would have anticipated a fall back in stock price except for the buyout. As Part said, at the time the price reflected a premium over the fundamental value of the company. If the Ebola stuff hadn't come along I imagine 27 would look pretty good. But it did, the deal is done, and as you say, time to move along to something else.
I like CENX and I have accumulated it for years after the recession and obviously its done great. However, I have often wondered why CENX does so well while AA simply doesn't perform near a well. Size? The fact that AA is an integrated producer with its own bauxite while CENX isn't and doesn't have that burden? I am just curious.
I don't know, I have never been through a merger and a reverse split. I assume they want the share count down. I have a lot of this that I have accumulated, and it would be prudent to sell off some, but my taxes are already through the roof for this year, so I reckon I will play along. It should be a power house when it gets done.
I guess it all depends upon what the price of the merged company is prior to the split?
It seems to take its hits at quarter release, so buy some protective puts with short term expirations and strikes close to current price. If it get hit your options go up dollar for dollar with the fall in stock price
Its on a short options cycle with 2 week expirations. That's gold for covered calls. Something like this can blow up over the normal 1,2, and 5 month option cycles, but two weeks lets me place my strikes outside of any normal move expected in 2 weeks and I get a great premium. If it does move I can buy them back and uncover the appreciation. Got to have a lot of shares to make it work, but if you got them go for it.
The merger is Dec 31, and trading in the new company start Jan2. However, I am a bit confused about the reverse split announcement. Sharesholders in TQNT get 1.65 shares in the new company for every TQNT owned. However, they said they are going to reverse split 1 for 4 upon completion of the merger. So if I get 1000 shares of TQNT, I get 1650 shares of the new company followed by a reverse split 1 for 4, so I end up with basically 400 shares of the new company at 4 times the price. Seems a bit odd about the reverse split, I was unaware that was happening.
I don't care if it gets called away. I place my strikes close when the expiration is close, and far out when its long. For instance, I will likely place it at 29 for the next expiration, which is Dec. After that the next cycle is in March, so I will be somewhere in the 31 area. But if it gets called I make a chunk and can always buy back. Plus if it really runs I can buy the call back. Sure, you lose money on the call, but it uncovers the stock appreciation that was capped by the call, so your portfolio value reflects the increased price, so in the end the option loss is minimal.
I have been selling covered calls on my CENX, its a great premium generator. I think Carnak has moved onto mystical retirement, but perhaps I will summon him at some point and introduce those on the CENX board to him.
They are full of it if they mean 2014. I don't see it going up 27 points in 5 weeks of trading when you take into account holidays. If they mean 2015 that's possible.