Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

baletwine....

I still like it also. Most folks seem to be assuming that the order was a normal type order for the Maxum, which in theory carries a very nice margin. I doubt that very seriously, and suspect that the was done with very little margin (as was the last ASE deal) just to keep things going. I would also be interested to know the terms of the deal and if it is subject to cancellation without penalty - I suspect it is for another 30-45 days.

The real key is what the market does over the next week or so. Normally, it takes about 3 days for news to wear off, but the size of today's move suggests that most of those who wanted the stock took the opportunity to buy it and they also ran all the new shorts. My guess is that it is a relatively low risk short, but you never know, of course. I continue to think that fundamentally, KLIC should be in the 2's, which both reflects the danger of BK and also recognizes that there is a chance it will survive. Any real fundamental recovery for KLIC is a long way off, even if the economy is recovering, which I think is not the case. The company itself has suffered a lot of damage.

Good luck.

mlsoft