haven't looked at the spread/ratio chart, strictly a valuation/fundamental play.
Pairs trade
Started by
VolPivots
, Jul 05 2007 07:24 AM
4 replies to this topic
#2
securelstmile
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Posted 05 July 2007 - 08:09 AM
haven't looked at the spread/ratio chart, strictly a valuation/fundamental play.
The reason why corporations will choose rimm over apple is encryption.
The china thing is an interesting twist.
http://www.nytimes.c...o...nyt&emc=rss
The harder I work, the luckier I get.
#3
mss
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I'M WATCHING
Posted 05 July 2007 - 08:56 AM
Added to long AAPL and RIMM 
WOMEN & CATS WILL DO AS THEY PLEASE, AND MEN & DOGS SHOULD GET USED TO THE IDEA.
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!
#4
VolPivots
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Posted 05 July 2007 - 09:45 AM
haven't looked at the spread/ratio chart, strictly a valuation/fundamental play.
The reason why corporations will choose rimm over apple is encryption.
The china thing is an interesting twist.
http://www.nytimes.c...o...nyt&emc=rss
Thx for the link. RIMM owns the corp market....I doubt AAPL is a threat. The trade is solely based on looking at the Enterprise Value / EBITDA ratios. If the ratio reaches parity (based on TTM multiples....we're not even talking about growth potential here), either AAPL moves higher by ~ 30% or RIMM moves lower by ~25%. Entry prices: shorted RIMM at 219.29. Bought AAPL at 128.03. Time will tell if valuations matter
Edited by marketneutral, 05 July 2007 - 09:47 AM.
#5
securelstmile
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Posted 05 July 2007 - 11:32 AM
Mn good luck or good skill I should say.
Best to you!
The harder I work, the luckier I get.
