I can't believe this stock is trading at $13, it could easily be at $100 in 3-4 years from now. You don't have to stretch the numbers that much for it to pull in $8 EPS at 12-13 P/E = ~100. The education sector would have to recover but still, I don't think itâs impossible that once the disdain of for-profit education goes away, this stock will hit $25 or before it gets bought out. I'm long shares, but I was looking at the options and everything is expensive. The Jan 2014 20 calls are being bought up with $1.00 premium. I'm LT bullish on this company, but the options seem really expensive. Is that a correct statement? What is going on with the options? How do I understand what the bias is?
Why is ESI trading so low?? Here's some clues: http://finance.yahoo.com/news/weak-enrollments-hurt-itts-4q-140848024.html http://www.fool.com/investing/general/2013/01/29/itt-educational-services-puts-on-the-dunce-cap.aspx http://finance.yahoo.com/news/itt-educational-services-inc-being-003800519.html http://finance.yahoo.com/news/law-offices-todd-m-garber-013600085.html http://www.bloomberg.com/news/2013-...-suit-of-defrauding-investors.html?cmpid=yhoo http://finance.yahoo.com/q/bc?s=ESI&t=5y&l=off&z=l&q=l&c= Maybe all the bad news is priced in. Time to catch a falling knife??? BTW: looking at implied volatility of its options they are not unusually priced.
Anyone still following? One of the auto articles that detects large option buys came up last week http://finance.yahoo.com/news/short-squeeze-itt-educational-092305519.html Do you guys think its wise to follow the big money call position and keep holding my shares as long as they don't sell the calls?
well I sold shares, I did pretty good on buying in terms of conviction and adding.. Selling I could have done much better, overall made a good return, woulda been better if i traded options..but I was just really confused on what to buy though looking in hindsight any call option woulda worked well lol