MQY/BDC - That's a fun one. Goes up and up as a bonus to the 0.07/month payouts.
LL/Ricker - Well there's no reason to think they won't go back to earning $75M/yr and their market cap at $19.72 is only $534M - this is why LL was picked 6 times as a Top Trade Alert in the last year and a half! So obviously, a conservative 10 gets them to $30 and $40 is probably fair as that would be $1Bn cap and by then they should be making $100M going forward (2019). So, 12 months $30 but on to $40.
As a new trade on LL (and it almost pains me to pay double what our other trades were), I like:
- Sell 10 2018 $20 puts for $4.30 ($4,300)
- Buy 40 2018 $20 calls for $3.80 ($15,200)
- Sell 40 2018 $25 calls for $2.20 ($8,800)
That's net $2,100 on the $20,000 spread so upside potential at just $25 is $17,900 (850%) in just 16 months. ToS says net $3,950 in ordinary margin so it's very margin-efficient and, if you want to be greedier than 850%, you can sell 5 Jan $22 calls for $1.20 ($600) and pick up an extra $600 per Q (28%) just doing that!
TASR/Bai - Las Vegas just bought a bunch and there was a study that showed 90% reduction in complaints filed against police who had cameras - that's a big win for them. That's why they are our stock of the Decade!
We're almost at the inflection point I predicted back in 2008:
Submitted on 2008/12/29 at 12:46 pm
TASR – I imagine several countries are probably stepping up orders for non-lethal (hopefully) riot control gear! South Korea just put in a big order and they continue to win pretty much every lawsuit. The turning point for TASR will come when a police department loses a lawsuit for NOT using a TASR when they could have.
