thanks, Verland

Here’s the really intriguing comment from the PR:

“….the Company’s initial deliveries of custom power control units to a provider of photo traffic and electronic toll enforcement services”

This could dwarf both the utility disconnect and even the set-top box segments of the business.

Why? Because cities and municipalities are increasingly turning to traffic and toll enforcement as a normal, natural source of everyday, ongoing revenue. And that means buying the equipment with which to accomplish said enforcement. And that market is barely dented. And that’s not even getting into non-traffic surveilance applications which more and more cities are deploying. Dallas is doing it all over the downtown area.

Huge. Simply huge.

(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Sell)

Editor: Yes- as i have been saying, the company is doing a good job mitigating the risk through rising sales and lowering losses. Of course, the preferred dividends are being paid in stock, so that will give the market more supply to wrestle with. However, as I have been saying, it’s like an option that doesn’t expire. 

Al

Editor: Yes, I really got burned on some puts on an individual stock- RIMM to be exact- I couldn’t go out to far because the premiums were huge. I’m expecting a corrective phase to start within the next two weeks, and it could go on for some time. We are overdue. 

Chris J.

Editor: Glad you went out to June. I mean the market trades in ways that don’t make sense just before and on options expiration day. I should have maybe waited until Monday to put the position on. However, I’m pretty certain we are due for a pretty decent correction, so I have a lot of conviction on this theme.  I’ll commit a little more if the market continues to rise. Yesterday, the market was up, but on very light volume without enthusiasm. At the slightest sign of unexpected trouble, fund managers will scramble to lock in their profits of the last 7 weeks.

Editor: Wow- the banks being in turmoil must be an opportunity for them. There’s another company that had a good, profitable year or two, but couldn’t sustain it. Stock traded great for a while then fell apart.

Editor: Wow- the banks being in turmoil must be an opportunity for them. There’s another company that had a good, profitable year or two, but couldn’t sustain it. Stock traded great for a while then fell apart.

Editor: Possibly- or possibly it might start to trade better for any number of reasons. Perhaps the sales with pick up from the DR program- perhaps something else positive will happen. I don’t know. Just stick with your discipline- whatever that is, and don’t get emotional about it. That’s my thought for you. 

If you don’t own the stock, I have another: why do you care? Open ended.

Is Dr. Richard Goldfaarb still there? Thanks.

Editor: Yes, Goldfarb is still promoting the virtues of Cinnergen as far as I know. I take it every day, and I believe in the product. 

Editor: No- you buy calls on QID if you are betting the market is going into a corrective phase.- Anotherwords, down. Remember, if QQQQ (NASDAQ 100) goes down 1%, QID goes up 2%- so, if you buy calls on QID, you are really leveraging. I am betting the market will go into some sort of corrective phase in the next two weeks. More in the weekend edition.

Editor: I don’t think it’s directed exclusively at NIHK- Not many investors care about micros in today’s environment. If you believe, it just requires patience. 

I’m loaded back up again. That sure looks like “a” bottom to me. What do you think?

Editor: Everybody hates this stock right now, which to me is an indication to stay long. At some point, there will be some international publicity on some country or region going to LED lighting to save energy, and the stock will run back to $30. Then, in light of last quarter’s poor numbers, I might pare back. Today, CREE announced the extension of a stock buy back. Should give it a little pop.