crazyray™
11-02-2007, 09:51 PM
Wellcare, Inc (WCG)
The FBI raided the stock last week... went from 120 to 20.
I tried to catch the falling knife on the way down which is a horrible call, bought some around 30.
The logic was simple: I've wasted $3,000 on dumber things in the past few years, and I had some $ sitting around. I figured the downside was this was Enron/Worldcom and the stock was going to zero, so the most I coule lose was 3g. But the upside could be 20-80 points, which was worth the gamble. I figured that if it was anything LESS then cooking the books, the stock would rise considerably because the street baked in the WORST.
Anyway, I almost got shook out @ 20 but held it.
Now the stock is up to 33 and printed as high as 37.
THIS WAS PURE LUCK, so I just want people to know just how dangerous making a play like this is. I've made quite a few bad trades this year, but this was just like throwing down on red or black.
It looks like now that the problem was hiding revenue to cheat on taxes, which while foul... is nowhere bad as what people were baking into the price.
Stock printed 37 AH tonight after the news came out, settled around 34... making it up 10+ for the day. Could easily see 50+ in the AM, but I wouldn't want to risk telling anyone to invest.
I just got lucky. :yipee :agree
The FBI raided the stock last week... went from 120 to 20.
I tried to catch the falling knife on the way down which is a horrible call, bought some around 30.
The logic was simple: I've wasted $3,000 on dumber things in the past few years, and I had some $ sitting around. I figured the downside was this was Enron/Worldcom and the stock was going to zero, so the most I coule lose was 3g. But the upside could be 20-80 points, which was worth the gamble. I figured that if it was anything LESS then cooking the books, the stock would rise considerably because the street baked in the WORST.
Anyway, I almost got shook out @ 20 but held it.
Now the stock is up to 33 and printed as high as 37.
THIS WAS PURE LUCK, so I just want people to know just how dangerous making a play like this is. I've made quite a few bad trades this year, but this was just like throwing down on red or black.
It looks like now that the problem was hiding revenue to cheat on taxes, which while foul... is nowhere bad as what people were baking into the price.
Stock printed 37 AH tonight after the news came out, settled around 34... making it up 10+ for the day. Could easily see 50+ in the AM, but I wouldn't want to risk telling anyone to invest.
I just got lucky. :yipee :agree