Wednesday, April 05, 2006

Hey Jude

St. Jude Medical (STJ) warned last night that it would not be able to achieve its quarterly sales numbers. Implantable defibrillator sales have slowed remarkably, and so the numbers suffer. The company is blaming industry turbulence resulting from the recent acquisition of Guidant.

The news has sent STJ tumbling. It currently trades at $36, down 13%. And, it is now a loser for me with a cost basis in the 38.50s.

In other news...

Shinhan Financial Group (SHG) has really taken off without me. Now, I can do nothing but wait. I expressed my intent to purchase here. The stock is now trading up almost 15% since. Must not chase. Must not chase. Must not chase. In any case, I'm reminded daily of the train I missed. Maybe it will come back for me.

Time to take the sad song... and make it better.

Apple (AAPL) has unleashed new software to run Windows XP. At this very moment, that news is good for a 7.5% move to the upside.

SanDisk (SNDK) is trying to break $60. At this point I'm 'maxed out' since this was a buy-write position. The current basis on the shares is 53.27 (55.72 stock - 2.45 call options). Once SNDK is at 57.50 or above, no additional profits can be made. If it moves considerably higher, then I might buy the April 57.50 put contracts on the cheap to lock in sizeable gains. We're definitely not in the clear yet as SanDisk announces their earnings the week of options expiry.

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