Buying DRL on dips

O

Option Trader

See the chart of DRL regarding recovery after dips in the past.
See how the shorts sold a ton of shares at $19.50, and how even if the stock would recover a $1 or so they would still be profit.
See the change in the company in the wake of the private equity group.
See the new loans % increase.
See the expectations to turn profitable.
Note the interest rate reductions which I believe benefits them greatly.
Note how $1 is being paid for the calls that the price will go above $50 by Jan 2009. ($1 is because you can sell 20 options at $.05 for each 100 shares, given the 20:1 reverse split).
 
Now, a month later, DRL is down to $18.04, which I believe will almost inevitably recover within days. See again DRL's track record of recovering on the dips & the speed in which it happens (including the pre-mentioned February recovery).

To add icing to the cake:
A) Since my February postings, other good news has come out on DRL that caused the stock to reach (hit $22.03 on February 27th--actually the public got the news only the next day.)
B) We are just days away from the anticipated 10q (expected on Friday), which I believe may already show favorable results & likely to have no more of these one-timer write-offs.
C) We are less than 2 weeks away from the next anticipated interest rate cut, which to my understanding has a major positive impact on DRL's mortgage portfolio.
 
Quote from Option Trader:

Now, a month later, DRL is down to $18.04, which I believe will almost inevitably recover within days. See again DRL's track record of recovering on the dips & the speed in which it happens (including the pre-mentioned February recovery)....
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Yesterday there were some liquidations. Today, the price is $18.75. Moral of the story: buy DRL on dips.
 
Quote from Option Trader:

Yesterday there were some liquidations. Today, the price is $18.75. Moral of the story: buy DRL on dips.
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Today, DRL closed at $19.62, about a 9% gain in 4 days from the $18.02 price (had I called the bottom, it would have added another 4% or so).
 
Quote from Option Trader:

Today, DRL closed at $19.62, about a 9% gain in 4 days from the $18.02 price (had I called the bottom, it would have added another 4% or so).
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March 18, DRL closed at $21.18.

Today, DRL closed at $19.13, which I believe is a great buying opportunity again--assuming they already got enough people to liquidate today.
 
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