Replies to post #438 on S&P short term cycle swings

[SyndicateTwo]

okay, how much would you pay for a company that will guarantee you they'll make $3.85+ per share for 2009? I'm talking multiple.

20? 30? Hell, if it were a tech stock I'd say AT LEAST that.

Would you pay 8x that EPS for that stable outlook? I tell you what - how about less than 6 right now?!

Here's the trade -- AET. Right now as I type this Monday morning, the stock is at $22.40. The JUNE $25 call is at .85. 10 of the last 10 years, AET has run up between May and early June. AET currently trades at a PE of under 6 with a PE of 8 making it a $30 stocks. IF it runs to $30 by June expiration, you'll make 5x your money.

I'm not counting on that. But it should be a big winner nonetheless.


Hell, with the math the way it is, it could be a nice long term investment right here.