Hey graderist. I guess this board isn't as lively as FEYE. Hopefully the bleeding stops soon here. My profit turned into a flat position. I still think long term AAL will be fine. Glad I sold the May $52 covered calls.
The market was already considering whether the sector was overpriced after FEYE earnings IMO, evidenced by their unimpressive move post earnings. QLYS added to that doubt. No one wants to catch a falling knife, so when buyers step aside, the price falls easily. I love the company and plan to buy back in.
If EJ catches up to where it should be counting ONLY LEJU assets, the pps should be around $11.
If so, we could be in for a sharp move higher. I remember for a long time hearing about how Yahoo owned a big chunk of Alibaba, yet investors didn't seem to care. And then they did. And YHOO had a very nice move at that point. Someone tell me if my math and my thinking are correct here. Let's forget for a moment that EJ has any value other than its partial ownership of LEJU. If both companies had the same market cap then a 10% move in LEJU would imply a 7% move in EJ, given the 70% stake. But since LEJU has roughly twice the market cap, every time LEJU moves 10%, EJ should move roughly 14% (2x.7). Since this does not usually happen, we become more and more undervalued over time. Make sense?
Very nice. I never feel bad about missing out on some $$$ if I made a nice profit, because I have been burned enough to not want to push it. Probably FEYE goes higher, but there is also some chance of a pullback that lets us back in at a better price. If not, I'm happy for the longs here. I'll look at PPC.
Thanks Wolf. And I yours. I'll still be around, and will buy back in at some point. Still like this sector very much.
I think long term FEYE will do well, but I didn't like being barely up for two days with a beat on top and bottom day in a hugely bullish day today. I may be making a mistake, but had almost a $5 move on a fairly recent buy on the last dip and was concerned about the change in mood we seem to be seeing on some of the high fliers. If I were still long, I would consider selling out of the money calls on at least part of my shares. Whenever a stock has a significant move higher, I want to capture at least part of that, as too many times I have watched stocks go up and then back to where they started. It seems unlikely FEYE is going to take off in a big way at present (I could be very wrong about this), so some covered calls out of the money are at least worth a look. My situation may be different since my profit taking is in a tax sheltered account. Best of luck longs. If some stronger momentum occurs, I'll probably jump back in here.
That is one of many myths about how to prevent shorting. I have never seen any board be effective with plans to stop shorting, even when massive naked shorting was taking place.
Beware of the word "should". By should we mean that by our logic event x will happen. Somehow it doesn't always pan out. But I'm with you if the market stabilizes tomorrow. Just be glad this isn't the LInked In board.
wolf--Glad you got a kick out of it. My dad did have a great sense of humor. That's part of why my name is punbr. Used to be "punbro" but the "o" got damaged in a Yahoo identity accident when I tried to use it once and Yahoo told me "punbro" was already being used (by me). Tough to hold some of these stocks like CYBR, FEYE, etc, but just about as hard not to have ownership of a few in this sector, as this is a business that is obviously going to continue growing rapidly. If FEYE makes a big move we will all kick ourselves for not having bought more. I once complained to a broker friend that I was annoyed about not having bought enough shares in a stock that rocketed higher and he gave me a sage piece of advice--"R...., if you want to fly with the eagles, you can't poop like a canary." Best of luck to you and all FEYE longs.
jbird--I'm long with you and hope you will take this in good fun, but reading "Something's up?" the day before earnings somehow reminds me of the PGA fan who always yells "In the hole!" the moment the ball is struck. Someone does know--unfortunately not us. VDSI was down over a buck the day before earnings, and then opened up around $3 higher the next morning (unfortunately giving most of that back). The market seems a little less willing to keep running fast growing stocks abruptly higher. If we are fortunate enough to get a nice pop in the morning, I'll be looking at selling some Jun $50 covered calls. Its hard to believe we will disappoint significantly in this environment, and even if we do I imagine guidance will likely be good. As my dad used to say when I was a kid, "It won't be long now, said the monkey as he stuck his tail in the lawnmower."
Be patient and we should move higher. Expect some volatility ahead in the market.
Seems a later time would be bearish. Accommodating investor interest would appear to be more of a positive, as if they have something good to share and are eager to do so. But then that's what I hope it means, if it means anything at all.
Wish I had been paying more attention. The May $7 calls were up 500% today. Could have bought them a couple days ago for a nickel, now a quarter, and higher definitely possible.
If you can find a beaten down stock that once was very attractive to own, and it appears to be dead in the water, you can often buy calls very cheaply. And you can buy calls out of the money that will move even if the stock never gets to that strike. I bought some EJ stock today. Wish I had bought the calls. Good luck to fellow longs here.
Thanks uncle. I appreciate the summary, as I struggled about taking a small profit vs holding through earnings. I don't think there is much downside risk, so decided to hold. Also, I expect oil prices to pull back again, so that is a good backstop if I'm correct.