That's an ugly bar on today's chart! Interestingly, the stock never bounced much today, I'll pass on a long Goldman for now.
Very little bounce today, I would be very careful trying to catch this wave. The option trade would be the only way to risk this earnings trade.
Monday will be our tell day. The people who move money that moves markets had their primary analysis done by lunchtime and price stabilized within pennies of close at noon. Now the in-depth research starts. Lots of late nights with spreadsheets and phone calls to colleagues this weekend on Wall St. gauging the extent of this debacle.
all good opinions and insight...I thought about the options, but dont have much experience with them...perhaps now is a good learning time. Thanks all for your input and I look forward to hearing more in the future...We'll see what happens
If you're a believer in the strong recovery that's currently priced into the market, MEE is a much better "buy the bad news dip" long term play than GS right now, IMHO.
If you were to buy GS, consider also buying puts to hedge yourself. The wheels could come off of GS rather quickly.
I have to agree with that analysis. MEE is mostly a known quantity at this point while GS isn't. A lot of speculation that more "shoes" will drop in the CDO closet.
buy MEE?????? Bad news - insiders are selling - P/E 34 - technicals are garbage.... on top of that the company is underperforming its peers... stock took out the trendline on increasing volume... this actually looks like a kick ass short on the next bounce... Did I miss something?
Fundamentally, MEE dropped on news of a mining accident, not on news of something that is detrimental to its long term growth prospects. Its P/E of 34 is a trailing P/E, but the institutional investors look at the future: Its 2010 earnings projections are nearly equal to that of 2008 when it traded at over $90/share. It's 2011 earnings projections indicate 90% growth over 2010. I somehow doubt these projections, but if you're a believer in the strong recovery hypothesis, then MEE's a winner. Technically MEE's trend is still very much intact as price is above the 200-day MA and well within the confines of the trend channel on a 1-year daily chart, despite the bad news and yesterday's market dip. We're talking about longer term holds in this thread, not day trades or short term swing trades. And when compared to buying GS at this point, MEE looks like a better option from among the "buy the bad news dip" stocks.