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Re: EA .
Me too, earlier this morning. Well, covered half for a loss, and
sold $55 puts expiring this weekend for $0.90 on some of the
remainder. As I posted recently, there's a gap large enough to
drive a truck through with respect to their revenue and non-GAAP
eps forecast for Q4 compared to last year, and the BFH weakness
shouldn't have a significant effect on the FY because it was so
close to the end. They will guide for growth in the coming FY, the
question none of can know the answer to is whether or not that will
be ahead or behind analyst expectations. This early in the year,
they can say what they like since it will inevitably be holiday
quarter loaded anyway. There's no telling how long EA can run with
a high valuation (now 22.5x FY16), and now the overall market is
running on China stocks bubble and QE front running, plus the
realization that a rate hike is forever six months in the future.
I'd rather be able to sleep at night and consider trading
post-earnings, than hold a large short through it.
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