DRL: seems to me an amazing buying oppty

There was nothing more comfortable than having a big buyer with a gigantic bid coming through, you buy at the ask, and he bulldozes the price up--the exact reverse of what the shorts have been doing.

My uncle sold a large quantity of another great buy in a Puerto Rican bank (FBP) to cash in on this one.
 
Quote from xing68:

any thought on this one now?
thanks
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Unfortunately, it seems your post is like picking at a week old scab. You just uncovered a wound these guys would just soon forget.
 
Quote from xing68:

any thought on this one now?
thanks
More...

This stock is right where it should be. The company is run by a bunch of sleeze bags who lied to investors in the past and can't be trusted not to lie again. If you want to get in bed with idiots like that, buyer beware.

I had the stock at 40 last year when on their conference call they lied about their stability under direct questioning from analysts. A shame they aren't behind bars with what they did to their investors.
 
Quote from xing68:

any thought on this one now?
thanks
More...
I still hold DRL because of my belief that you "trade" a stock which you perceive is anyway a value, so if the trade turns against you, you can still come out ahead.

I believe the stock has gone down from shorting. My speculation is that the shorts are not privy to any confidential information, rather they did they responded to the same info that everyone else has (although a small risk exists). IMO the stock couldn't have gone down any more than it already did when it was more than a dollar higher.

The upside I see with DRL (and FBR) is because a) at such prices they may be good candidateds for buyouts, b) the chances of good news and up movement in the stock is 9:1 IMO; this is because when a stock goes down for a very specific cause which is able to be handled (which seemingly the Puerto Rico banks have already shown), their focus is on handling the problem, and it's only a matter of time.

I have bought $5 in-the-money calls of Jan 2007 and Jan 2008, and have been selling out-of-the-money calls of the earlier months meanwhile.
 
I warned you guys about DRL's misleading ratios:

http://www.elitetrader.com/vb/showthread.php?s=&postid=1068595&highlight=drl#post1068595

Quote from Rearden Metal:

I think you're going to dump your DRL right after you read this message.

<b>The P/E ratio you see is fake. </b>

It is based upon pre-restatement earnings and forecasts.
DRL <b>really</b> earned 29 cents per share for the first nine months of 2005. Just do the math, and now that P/E doesn't look quite as pretty. No dividend anymore either.

http://yahoo.reuters.com/stocks/Quo...06-05-03_13-05-37_WEN6625&symbol=DRL.N&rpc=44

Still like the fundamentals now?
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Although one could say when the market got hit, DRL also got hit especially noting the high beta, nevertheless, it did come as a surprise to me, and I believe it only happened because the shorts took advantage of the down market.

You wouldn't buy DRL today--I would. We will see what will happen from today onwards. It opened at $6.24.
 
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