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Wednesday, December 8, 2010

What the???

Since 9:51am, the 140 April IBM Calls had an out of whack Bid/Ask ratio. The Bid is actually higher than the Ask. It is now 9:55am, and the Bid has ranged from 9.10 to 9.20 while the ask has stayed at 9.00.

Could be that the real-time ticker is frozen for the Ask, but everything else is working so I don't think that is it.

Just weird.

PS... IBM will have a year end eps of 11.44. With a conservative PE of 13, IBM will trade at 148.

(The market is so freaking undervalued.)

2 comments:

  1. I just wondered what your reaction might be to Philip Davis's article for today on Seeking Alpha. Do you find anything at all to agree with there? I guess there is at least the slightest bit of agreement in that you're waiting for some consolidation to buy with abandon rather than buying now, even though you feel that stocks are inexpensive; but then I suppose you're hesitating for technical reasons, while Philip Davis's concerns are largely fundamental.

    I'd greatly appreciate your response, as always.

    ReplyDelete
  2. I don't follow Philip Davis, but I think this is the article your referring to

    http://seekingalpha.com/article/240715-wednesday-worries-after-ireland-who-s-next

    Seems like an angry guy :)

    My hesitations were purely technical, but with that said, I added AAPL calls today. Albeit not heavily.

    (While overall conditions are not awesomely optimal, and some still overbought, some names eased up. But i ultimately believe in the 'normalcy' thesis.)

    There is more than one way to skin a cat. Looks like Philip is angry because his opinion on how to skin the cat is not being followed.

    The most important aspect of any society is stability. When dealing with a crisis leaders must balance and push the envelope, and follow the path that maximizes stability while enacting change. (lessons learned from pre-WWII era)

    This is exactly what is taking place around the world right now, but many would like to ignore this fact, and simply stick to their own opinion on how the 'fix' should take place. Thereby clouding an accurate investment thesis.

    But that is just my opinion :)

    ReplyDelete