Updates on FFIV and a look at EK’s BK

All rightie, folks, we’re off the races again this morning and the horses are running tight. FFIV, our latest purchase, is up $10 this morning off of a very strong earnings report last night. I was a little disappointed that hardware revenues weren’t stronger, but the service side of the revenue was on fire and the services side is recurring, so that’s a strong indicator of continued strength ahead. Of course, hardware sales are what the servicers at FFIV service in the first place, so that’s why I’m slightly disappointed about that one thing. But really, it was another very strong report and there’s lots of upside in this stock yet, I do believe. So I’m holding my common steady and I’m selling about half the calls I’d bought yesterday, locking in a double or so and leaving myself lots of leverage to the upside as the calls are now about in the money, so they’ll really kick in from here.

In other news, Eastman Kodak filed bankruptcy today. That is, EK went BK. The stock is suspended and there’s some talk that the market makers aren’t going to trade it on the NYSE anymore….in other words, I’m not sure how to buy this stock this morning and whether we’d get filled on any buy orders we put out on it, so tread carefully if at all. I’ll continue digging and seeing if I can and will do an EK-goes-BK trade like we did when AMR went bankrupt and we caught a huge profit on the aftermath trade. Don’t force anything. Stay in the game.