This stock has dropped nicely (or not) and I was looking at buying more shares, or selling puts.
I bought in Dec 13, and after going up, it is back to similar value points.
Saul mentioned in his very nice review that it had bottomed and was going back up. I hope so!
Looking today, I remembered they have not reported yet, and that they warned of declining year over year sales at last report. They beat Rev and Earnings expectations but warned on revenues.
They did also have the first sequential drop in both revenue and earnings per share that I can see in Morningstar’s data, last quarter. I can’t see back to the change from Oct 12 to Jan 13 quarter last year to see if that is seasonal. I would have thought that the Xmas quarter would be great for this company, so seeing a sequential drop last time makes me wonder. The YoY growth was good, but that is the first time sequential dropped.
They report on the 3rd. Anyone buying? Anyone worried about them reporting slowing sales again, even though they told us that? Why was the Xmas quarter a decline sequentially?
I don’t see any puts worth selling here at these levels really. Unless we go ATM to buy more shares.
I have a medium sized postion and would like a little more, but wondering if we have really seen the bottom. A mediocre report in this environment and we could get a lower opportunity in a few weeks. Great spot to start a position, not sure about adding to a fairly full one.