I prefer to invest in seriously undervalued stocks or buy puts against overvalued stocks that have near-term catalysts (eg LRN).
I’m trying to decide what to do about a longer term play on FTR, however–a company I invested in back in its heyday but haven’t paid attention to recently until now. Here are a couple of articles I have read: http://seekingalpha.com/article/1628112-is-frontier-communications-dividend-safe
Would anyone care to discuss this one? My approach if I go long would probably be to buy January 2015 calls at $5 and let them appreciate, but only if I conclude that FTR is really undervalued.
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.