7:30am (EST)
Blue Coat Systems (BCSI, $16.00, down $0.54) was scheduled to report earnings after the bell on Wednesday but delayed the announcement until next week. The company said it needed the extra time to complete the books for the quarter that ended April 30th. That is not a good sign if you are a shareholder.
The company also added the postponement was due to a recently identified “irregularity” with one of its shipments in its European operations. What we want to watch for is the earnings number. Blue Coat is expected to report earnings of 18-24 cents a share on revenue of $112-$118 million. Wall Street has got them penciled in at 21 cents, $114 million.
Usually something like this is not going to produce an earnings surprise and it’s possible this event is no big deal. But it is an interesting development. There may be a trade but we will have to wait to see how this one shakes out.
The good news is that if there is a trade, you will soon have access to it. I have been mentioning the changes we are making and I’m so excited that I can hardly wait to reveal the details.
I can tell you this. The service we are about to roll out is going to knock your socks off and it will be VERY affordable. I should have more details by the weekend in the Weekly Wrap and will keep you updated in the blog.
We have heard your requests and we are working hard to offer you the best options mentoring program on the planet. If you are new to options trading, this is one event you will not want to miss. Stay tuned…
Back to Blue Coat… the stock was down 10% in after-hours trading last night. The June 17.50 calls (IYUFQ, $0.75, down $0.11) traded 1,200 contracts and hit a high of $1.00 on Wednesday. The June 15 puts (IYURC, $0.85, up $0.20) traded about 400 contracts so traders were taking the bullish side of the trade going into the close.
Send me an email if you are interested in the mentoring/ trading service. We will probably have a limited number of spaces only because of the incredible value we will be offering. I want those of you who have followed me on a regular basis to have first dibs. Man, I can’t wait to share the great news!
Rick Rouse
Rick@OptionsMentoring.com










Home Depot and Lowe's Trade Lower/ Trading Service Update
Thursday, May 28th, 2009
9:00pm (EST)
Home Depot (HD, $22.70, down $0.63) and Lowe’s (LOW, $19.02, down $0.61) lost 3% after a report showed first quarter mortgage delinquencies jumped to 12%. That means more than one in 10 people are behind on their house payments.
Not only that, home owners with good credit are starting to feel the pinch. In fact, they now make up the largest share of foreclosures as job losses and pay cuts continue to cut like a knife.
All of this could mean more foreclosures and add to the already growing housing inventory which in turn depresses building activity. I had mentioned the sector a couple of weeks ago and said now was not the time to go chasing.
That would include Lowe’s and Home Depot. I would love to see Lowe’s fall back to $17 which is support and if it falls below that level it could test its March low of $13. Home Depot could get interesting at $20. They got a pop on good earnings but nobody is buying the higher priced items. We will have to see how they trade and it’s possible they may not even get to our “alert” prices. If they do, we can then decide if we should go long or short.
Which brings me to another point. I wanted to give everybody some more details on our new OptionsMentoring.com trading service. It is going to be a monthly service that allows you full access to our exclusive menbers area. Here you will find archived training sessions that you can view anytime at your leisure. Plus, we will be offering live training classes three days a week. You will also have unlimited email and phone support as well as our trade picks.
Folks, this is an incredible deal because you will learn so much about options that will make you a better trader. And if you are brand new to options trading, this program is a must! You will learn credit spreads, directional trading, chart reading and much more. The response we have received has been great and I encourage those of you who haven’t emailed me to do so. I want those of you who follow me to be the first to get in.
Rick Rouse
Rick@OptionsMentoring.com
Tags: blog options, Home Depot, Lowe's, option trading service, options blog
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