Replies to post #256231 on Zeev's Turnips Patch-No Politics (ZEEV)

[tantal]

Joe, good comments except IMVHO the one about pain. I don't think there's enough options volume on stocks like this, er, well, most stocks, to use the "max pain" concept. The guys who do well with it use it only on the index options, and very liquid stocks like MSFT, and even then the window is from the wed before expiry through the end of expriy week.

With that much slop in a "hit" of max pain, with such small options volume, I don't think it's a significant factor for most individual stocks, at least in the absence of consideration of the index max pain.

Got burned on this early on - maybe I'm biased =

[Sherlock356]

Lets see how it does Joe. Ive been on that stock for years now.

[ardent jd]

QLGC

Well, since you asked... (g)

I agree that, in the short-term, this stock may have more work to do on the downside basing. But my typical holding period is a year, so I take a longer-term perspective than most on this board. And on that basis, it looks pretty compelling. Here's the weekly chart:

http://stockcharts.com/def/servlet/SC.web?c=QLGC,uu[r,a]wacayyay[df][pb50!b200][vc60][iUb14!Ll14]&am...

The series of dojis in the 27 area, along with the recent ADX spike and the DI+ below 10 and the oversold RSI, should provide very strong support. Notice that the stock had huge runs whenever these conditions prevailed before, and this time the readings are more extreme.

On the fundies: sure they're bad short-term. But this is a well managed company with great balance sheet and a dominant position in a business that is still growing decently. Gross margins are a good indication of the "quality" of a hardware company's business, and the only others with similar GM's off the top of my head are CSCO and INTC...not bad company to be in.

[JimQuinceH]

Joe, In regards to your post on QLGC, it looks to me, like QLGC just hit a Cycle Top on June 1st. I'd look for QLGC to go down for six or seven weeks, possibly reaching as low as $20.

Jim