السبيعي
23-09-2001, Sun 6:00 PM
1. Many Reasons To Buy Puts on Cisco (CSCO)
Bernie Schaeffer cites a number of reasons why he
recommends buying puts on Cisco Systems (CSCO). For
instance, management of the networking gorilla just
announced a reorganization, but Schaeffer says he heard
no concrete proof that business is turning up. Meanwhile,
shares still sell for more than 70x next year's expected
earnings.
Another reason is that next quarter should see a paltry
$0.02 per share in earnings. Schaeffer also points out that
the stock has failed to close above its 10-day moving average
since August 6. His measure of Cisco's relative strength vs.
the S&P 500 has resumed an earlier downtrend. The entire
networking sector also remains anemic as the AMEX
Networking Index continues to drop.
But option players piled on call open interest at the 17.50
and 20 strikes. Schaeffer sees no short covering rally in
the cards as all short positions could be covered in a day
of trading. On August 27, he advised buying the January 20
put (CYQMD).
For more on Bernie Schaeffer's advice see "Aggressive
Portfolio," September 2001, The Option Advisor. Bernie
Schaeffer provides practical option investing
recommendations that are simple to understand and execute.
For a free 30-day trial go to:
http://www.investools.com/c/go/OPTI/TUADV-opti91801?s=S600
-----------------------------------------------------------
2. Oberweis: Significant Small-Cap Rally "Imminent" (AMRN)
"We expect the market to experience a significant rally
soon, likely within the next two to three weeks," says Jim
Oberweis. He predicts small- and mid-cap stocks will enjoy
the greatest appreciation as they did not rocket to
overvaluation in the late 1990s. Oberweis compares today's
market that of the 1970s; stocks were expensive after the
bull market of the 1950s and 1960s. Small-caps with booming
earnings led the market out of the doldrums then, and
Oberweis says history is about to repeat itself.
One of Oberweis' favorite small-cap earnings rockets is
Amarin (AMRN). The company licenses or acquires under-
marketed products from major drug companies and runs direct
sales operations to physicians. Amarin currently sells 15
drugs for pain management and neurology and aims to lead in
its niches.
Q4 saw revenues explode by 400% to $17.7 million from $3.5
million in the same quarter last year. Earnings grew to
$1.00 per share vs. a loss last year. Oberweis sees Amarin's
revenues growing from $26.2 million in FY 2000 to $80
million in FY 2002, and EPS should rise from a loss in 2000
to $3.65 in 2002. He just issued a buy on the stock.
For more on Jim Oberweis' advice see "Currently Recommended
Stocks," September 2001, The Oberweis Report. Jim Oberweis
invests in small-cap stocks with revenue and earnings
growing at least 30% and mid-caps growing at least 20%.
Bernie Schaeffer cites a number of reasons why he
recommends buying puts on Cisco Systems (CSCO). For
instance, management of the networking gorilla just
announced a reorganization, but Schaeffer says he heard
no concrete proof that business is turning up. Meanwhile,
shares still sell for more than 70x next year's expected
earnings.
Another reason is that next quarter should see a paltry
$0.02 per share in earnings. Schaeffer also points out that
the stock has failed to close above its 10-day moving average
since August 6. His measure of Cisco's relative strength vs.
the S&P 500 has resumed an earlier downtrend. The entire
networking sector also remains anemic as the AMEX
Networking Index continues to drop.
But option players piled on call open interest at the 17.50
and 20 strikes. Schaeffer sees no short covering rally in
the cards as all short positions could be covered in a day
of trading. On August 27, he advised buying the January 20
put (CYQMD).
For more on Bernie Schaeffer's advice see "Aggressive
Portfolio," September 2001, The Option Advisor. Bernie
Schaeffer provides practical option investing
recommendations that are simple to understand and execute.
For a free 30-day trial go to:
http://www.investools.com/c/go/OPTI/TUADV-opti91801?s=S600
-----------------------------------------------------------
2. Oberweis: Significant Small-Cap Rally "Imminent" (AMRN)
"We expect the market to experience a significant rally
soon, likely within the next two to three weeks," says Jim
Oberweis. He predicts small- and mid-cap stocks will enjoy
the greatest appreciation as they did not rocket to
overvaluation in the late 1990s. Oberweis compares today's
market that of the 1970s; stocks were expensive after the
bull market of the 1950s and 1960s. Small-caps with booming
earnings led the market out of the doldrums then, and
Oberweis says history is about to repeat itself.
One of Oberweis' favorite small-cap earnings rockets is
Amarin (AMRN). The company licenses or acquires under-
marketed products from major drug companies and runs direct
sales operations to physicians. Amarin currently sells 15
drugs for pain management and neurology and aims to lead in
its niches.
Q4 saw revenues explode by 400% to $17.7 million from $3.5
million in the same quarter last year. Earnings grew to
$1.00 per share vs. a loss last year. Oberweis sees Amarin's
revenues growing from $26.2 million in FY 2000 to $80
million in FY 2002, and EPS should rise from a loss in 2000
to $3.65 in 2002. He just issued a buy on the stock.
For more on Jim Oberweis' advice see "Currently Recommended
Stocks," September 2001, The Oberweis Report. Jim Oberweis
invests in small-cap stocks with revenue and earnings
growing at least 30% and mid-caps growing at least 20%.