Buy Alert: December 10, 2013

Buy Alert:  December 10, 2013

 

Trade Details

Buy General Cable (BGC) February $30 Calls for $1.35 or better

 

Why?

General Cable has had its shares of problems in recent months, which has pushed the share price lower.  Most recently, the company disappointed with Q3 earnings and Q4 outlook.  However, I believe the cable production company is ready for a rebound.

First off, the stock price is well below the 50-day and 200-day moving average.  Moreover, despite the various problems, the stock appears to very cheap on a fundamental basis.  Finally, call activity has been unusually high for BGC, suggesting investors believe the shares are ripe for a move higher.

Let’s buy February calls and give ourselves plenty of time on this trade.

 

Recent Activity

 

Category: OTW Buy Alerts