I think you're probably correct. Of course, the term patience for some people means weeks or months. With most companies it takes some time for the story to develop. I think that's happening now. Back in 2011-12 I was long TASR and got very tired of watching it bounce around $5 for what seemed like forever. And of course the bashers were all over the place, pointing out all the seemingly constant lawsuits. So, I lost patience, and sold most of my TASR. Ouch! Demand for products in this sector is only going to increase. There is room for more than one player. Same for the cyber security stocks. I'm long several. Good luck to all longs.
Where will FEYE pps be on Friday next week. My guess is $41.50. I think we will pause to digest this move, but it is a tough call. Could be anywhere between $40-$45.
amohr--Started a partial position here a few days ago at $21.88. You watching FEYE and CYBR? Hoping my FEYE shares won't be called away (Apr $41 written) so I can sell calls again for a nice premium. Same with 1/2 my CYBR shares. I think given the volatility in this sector there is a good chance I can trade in and out several times. If both beat earnings expectations they will be off to the races and at some point might be decent shorts. Or of course if they disappoint. That's why I'm using options here. FEYE could be back in low $30's if they disappoint or race toward $50. Hoping today's nice move in VDSI is the start of a big move.
I thought we would have sideway movement until closer to earnings. Have some Apr $55 calls written, but half my position still free to run if that is called away. If we pull back to near $55 by next Friday I'll buy my calls back and write them again for half my position. The premiums are too good to pass up.
Very nice call! Wish I had loaded up on cheap calls. What value would you put on the stock after this deal?
tooby---I was skeptical about this decision at first until I remembered an event that happened to me years ago. I had just played nine holes and was starving, so made a quick dash into the clubhouse for a sandwich. I was so hungry I was really looking forward to devouring my tuna sandwich, but didn't want to slow play so first hit my drive on the 10th hole. As I turned toward my cart, I saw a squirrel running away with half my sandwich. I really wanted revenge, but knew I would never be able to properly identify the culprit. Your suggestion would totally solve that problem, and hopefully discourage any future bandits, as well as reduce golf course robberies. Sorry, couldn't resist any longer.
I agree. We may overshoot where we were a bit just because the new longs will be on the sidelines, but I don't expect any huge pullback. In my fantasy, which I realize is only that, management would do this to lure in overconfident shorts, and then, once they're all in, announce some huge positive. Not going to happen, but would be fantastic. We will have to be patient.
I'm long and wish what you're saying were true, but won't happen unless some hedge fund decides to manipulate the stock higher for their own purposes. Have you ever seen the old Steve Martin movie "The Jerk" when Martin says in foolishly misplaced excitement "Things are going to start happening now"?
eat--You and a couple others here are thinking far too rationally. You don't believe in the wisdom of Charles (aka Chicken Little) about where the stock is headed? It certainly isn't bad news, but there was no reason to hype an announcement that should have little impact of the stock. I expect the shorts to knock back to around $12, and maybe even a little lower, but if they get too greedy buyers will send them scrambling to cover. I would love to see this kind of announcement done with some very positive news, but this just set up some traders to be very annoyed.
Hope you're right. I bought in a few days ago at $15, and then watched with annoyance as it quickly plunged. Thought briefly about buying more, but there was no way to know how far we would fall. Just hoping we get some very positive news re future growth. When exactly is this news supposed to be released?
There was an article last week I think that stated the idea of running out of storage was baloney, and that it would be 4 years away at our current usage, which is expected to increase through the summer months. Remember how persuasive the press was about peak oil, and how so many believed it? Even worse was the whole rare earth debacle. Oil prices may retreat, but probably not because we run out of storage. Kicking myself because a broker friend encouraged me to buy at $28 and I didn't because of all the "wisdom" of never ending lower and lower oil prices, then felt annoyed when it ran into the $30's, then vowed I would buy it back if it pulled back to $28 again, then chickened out when it did, and finally bought it at $33 on the way back up. Sometimes it is hard to stick to the plan. If it its $40 I'll sell, otherwise it is a long term position that I foolishly chased on the way up.
So you didn't buy any on the dip under $39? I bought some at $38.90 and am considering selling the Apr $41 calls for a buck.
Maybe stockspy got the day wrong but made a good prediction re direction of CYBR. I expect FEYE to do well this week as well, even though it has struggled lately.
Agree. Hopefully one or more of the analysts will like the story enough to give us some positive press and/or upgrades. I think we are headed higher this week.
jbird--Funny. I started a position just under $39.00 yesterday. Hoping to see the stock move back into positive territory so I can sell the Apr $41 calls for over a buck, which would give me over $3 move in less than a month if called away, or a better overall cost basis if not called. You buy any yet?
If we get a bounce, you might consider selling some Apr $55 calls. They are only around $1.50 now, but with a pop in the stock that could quickly be $3. Takes some of the anxiety out of holding for two reasons: first you reduce your cost basis, and second, you feel more committed to holding through the volatility and letting things play out when you have covered calls. At $1.50 it really isn't worth it since you are capping the upside. Remember, one significant hack can quickly increase the price on all these stocks. Given the growth of this sector, I have to believe we will see significantly higher prices, although volatility along the way is a given. Patience.