Tuesday, February 06, 2007

Quick Update

Sold February 42.50 (SWQBV) covered calls on the SanDisk (SNDK) position for 0.30. Effective cost basis for the position is now 41.96.

Also, Student Loan (STU) continues to fall today along with other student lenders following government proposals to cut student lending subsidies. This could impact margins a fair amount, so I'm now taking a more cautious stance.


Never-Limp said...

What do you think of KONG? If you buy more, what price do you target?

Brute Force said...

I like KONG as a pure speculative play. I am undecided on whether or not I'm going to add to the position. Thus far, I've bought into two losing positions.

At the $6-7 range I think the risk is substantially lower than at levels that I got in. If things go well for the company, I do not think that a longer-term target of $15-20 a share would be that far-fetched. But, it's definitely a gamble. You never know when it comes to China.

What are your thoughts regarding KONG?

Never-Limp said...

I think it's probably worth a play in the $6-$7 range in my speculative account. If the balance sheet wasn't so strong I'd probably pass. Everything can go wrong for the company and they could still survive for a long time with all that cash. I'll be watching for a wash out bottom.