echotoall.com Blog

Sold BRCM, for about a 3% loss, to purchase ICE.  The ISE bid was too overwhelming for me.  If ISE could go for such a premium, then ICE can go for more. (ICE is in a better area of focus and generally executing very well.)

I did not want to play the options here because on a technical level ICE was breaking down to 120, and the premium created by the volatility was too rich for me. So I bought shares.

I would of held on to BRCM, but again due to the tight restrictions on DNDN I do not want to be leveraged with the threat of lossing any of my DNDN shares. 

If the ISE bid does not speak for how undervalued ICE currently is, then I do not know what does.

If you got the cash, look to play ICE. (Even at 130.)

Listening to ‘Bulls & Bears’ this morning, the guy from S&P (I think Pat?) talked about FTEK. Got interested when he said it, so I looked into it… and it looks interesting.

When I looked into the name, I found it to be a very interesting company and concept. I kept thinking about the ‘Green’ push from California, and how this company will benefit.

I wanted to relay a few things from what I found interesting regarding FTEK (the stock).

There was a SeekingAlpha.com interview where the CEO, John Norris, stated:

“Personally I think this is a great buying opportunity (and I just recently did so in my personal accounts). If you believe that we can and will execute our business plan and grow this company rapidly and profitably, then today’s stock price is not over-valued at all. If you don’t believe that we can and will execute and achieve the results, then the stock price is already too high. It all depends on what you believe about the Fuel Tech team.”

So the CEO is basically saying (in a round about way) he thinks the company will continue to grow rapidly and profitably. That is a good thing, but if it does not, the stock will hick up in a big way. FTEK needs to grow earnings by some 40-45% to justify its current stock price, and even more for any upside. (But the CEO said they can do it.) OR, since it is a momentum play of sorts, FTEK needs to beat Revenue growth of 27%. (This is the high end of managment’s estimated Rev. growth.)

On the TA front, FTEK looks a bit over extended, and the 50SMA may act as resistance. So a buying opportunity may present itself later.

While writing a comment on my recent NYX submission to SeekingAlpha.com I made a deal with myself… If DNDN goes to 50 or NYX doubles by year end I will post my life story on the blog and even post pictures of me celebrating.

Why would Management say “mixed outlook from our larger customers… but remain optimistic for the 2nd half of the year”?

I mean, the semis have been dogs, and the only reason they are rallying is because they are not performing ‘as bad’ as many thought. So why did BRCM prepare the street for what they already know? And if they are optimistic for the 2nd half, why stay the negative comment in the first place.

The trade was right. BRCM beat rev. and earnings, yet those few comments caused the stock to decline. But was not expecting this management to create the level of uncertainty that they did.

As of now, I am holding. If it breaks 31, I will probably cut it loose.

UPDATE: Just went through the CC again…Based on the Q&A section, I think Management is being too conservative, way too conservative for the 2nd Q. Talk about a sandbagging.

Sold PMTI.  Looks like it can still move as it is still oversold, but there is some resistance around high 43. (chart) Thanks billwag… i owe you a drink… i think i owe you a few drinks :) 

Bought BRCM for the earnings play later today.  I would hold PMTI if I had the means to do it, but I need to keep myself flexible due to DNDN. PMTI probably started a bullish uptrend today. Could very well see 50-52 within 2-3 weeks. 

Also, look to play the oils. My favs are SLB and PGH.  Will probably get into May SLB calls today.

Hmmm… interesting note in the NYX report:

“During the first quarter of 2007, NYSE Group completed the full implementation of the NYSE Hybrid Market(SM) and became fully Regulation NMS compliant.”

Sort of throws Goldman’s arguement out the window. Uhmmm… w/that, BUY NYX.