A recent WDB Options Model candidate, PWRD is a very interesting little company. Currently trading at less then book value and less then 2 times cash, this Chinese software company has a vast array of 'role play' games that generate re-occurring revenue and are all going through upgrade cycles in 2013 . On top of that the company owns large commercial real estate holdings (valued alone at close to $200 million) and oh ya did I mention, more than $7.00/share in cash on the books! After getting exercised, our cost basis on the is currently $10.20 and our ongoing margin requirement to hold the position is $5.40. First target (38.2 Fib and gap fill) would represent a double on the trade. Ultimate target ( OTE Short SS ) would represent a triple.
I haven't commented on these stocks because I have been so busy trying to day trade Crude Oil and juggle a part time tennis teaching job (that now consumes almost all of the working day...ugh...gotta pay the bills). I had some time tonight and I posted a comment re. DRYS and I thought I would say something about this one too. PWRD has hit our '1st stop' (38.2 Fib) target and since then has consolidated nicely. Interestingly, this position is basically a double from entry levels so if one had taken this trade they really ought to have sold half their positions at double their purchase price and in essence created a 'risk free' trade on the remaining half. I fully expect this stock to tag it's OTE short sweet spot and am more than comfortable just riding it out to fruition....p.s. sweet double bottom breakout two sessions ago :)