she has good support at 1235.. so she might dangle there for a while
but Russian matter can blow that support right out... 1160-1180 then
becomes a good possibility.. although I believe she may bounce right back to
1235 area... she trades between 1230 - 1265 for a while.
in premium over book value (PCLN book value is $ 130 all cash).
In exchange they are getting about $ 50 per share per year in EPS.
It will take almost 25 years JUST TO BREAK EVEN to recover the $1,170 premium
paid .over book value. WORTH IT ?? how does the "growth" which is not
even guaranteed help the buyer of this stock ?? LOSING PROPOSITION
if u are not in a hurry just hold on and make the nice 7% divi ..
in the not too distant future she should be back above 50..imo
u may want to look at some beat down bio-tech stock to make
up .. I am buying PCYC OMED and ALNY XOXO and NMBL
imo look for M and A activity in coming weeks... a la JOSB and MW (!!!)
wont be surprised to see a small fish swallow a big one... current price action
where companies are selling below book and waaay below replacement cost..
solid back logs ... I smell something is up here.. maybe ... maybe not
Competetive headwinds, price to book, declining growth rates
after a certain threshold net tangible book-value has to come into
play.. otherwise paying a pe of 36 implies it will take 36 years to
recoup.. assuming the company is still around... a T-note is priced
at a PE of 30.. with 100% gurantee of principal... fair value
of Priceline is 650... not a penny more..
External market events in play so maxpain will not work besides
max-pain theory works only 50% of the time... she is pinned to
1295 tomorrow... will test 1230 by march 22 and 1150 by 3/28
she is toast for a while .. may be a long while
Half a billion in inventory is the problem... look for stock to a BWLD
tomorrow.. she sells off to mid 70's and down to 68 in coming days..
25-30 PE is too rich going forward... stay tuned... it is not over
by any stretch ...
How so?? pls explain why it is an OBVIOUS SHORT it can help everyone
reading this board