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SyndicateTwo

06/03/09 10:46 AM

#523 RE: Tyka #521

Tyka,



WDC's seasonality is very ugly starting about now. I am almost sure you'll see the high teens on it. But expect possibly just the low $20s if the market catches a bid. I am in the camp that suggests the market could rollover here, but you never know. Keep that one on a tight leash.


BLUD I think has just a ton of potential. I'm in for 100 of those calls because I think it could easily run to $23+ by op-ex. They are very profitable and just affirmed their full year outlook putting them at a forward PE of 12. The stock has historically traded into the high $20s/low $30s on much less earnings power. Actually, every year for the last 5 years they've grown their earnings substantially. Look here-

http://finance.aol.com/earnings/immucor-inc/blud/nas/actuals-estimates

Now seasonally, look here-

http://finance.aol.com/quotes/immucor-inc/blud/nas/average-monthly-returns


July through Sep is very good for the stock. You add in the above and you got a possible monster.

I consider a 'monster' anything that will at least double your money. This could triple or more on those calls I think depending on how fast it moves. But what I like most about both it and EBS is that they are both tiny float stocks that are profitable in seasonally strong times of the year that haven't joined the party in the market yet.

Let's face it, AAPL at $140, RIMM at $82, AMZN on $90, etc, etc. Oh, RIG at $83, FCX at $50, c'mon. Pretty much missed those and they are now getting a little toppy. That leaves all this money looking for a home. Drugs and biotech is where it's at.

The volume also suggests there's much more to come on the upside for these.

EBS going to just $15 will more than double those $12.50 calls.