I've given up on trying to figure out what is going on with SLAB and now view it is a trading stock. Hence I sold Feb Calls.Here is what I said on the Stock Advisor board on 12/26/06:I sold Feb 07 $35 Calls today for $2.20 on my last SLAB shares. If called total sale: $37.20Price when call sold $34.32Return 8.4%CAGR 74%There are numerous reasons behind this sale: - SLAB is no longer my favourite in the chip sector. Although I normally have room for more a few semis, I am trying to cut down the number of companies in my portfolio.- Their options remuneration continues to bother me and raises concerns about management. Discussed in earlier threads.- Although the potential return of 8.4% appears low I am going to concentrate on CAGR for 2007 in an attempt to bring a single overlay to my decisions. A CAGR of 74% is great.- While capping potential returns, this further reduces risk of holding SLAB by providing income stream. This works with improving my overall CAGR and also takes control of fear vs greed. The only reasons I would not sell this call is that I would be greedy and wishful of higher prices for SLAB.- I see SLAB as fairly to slightly over-priced at the moment. - Tom gave them a B B in his latest review.CheersDean
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Rat