Call volume for $35 July calls

Check out the volume on the July calls for VRTX (28.51)

$30 strike price trader 1995 calls.
$35 Strike price traded 5285 calls. - Some one bet $26,000 that VRTX price will go higher than $35 before EOD July 20th.

I checked almost all the other expiry dates for the $35 strike price and the volume is high only on July. This means it's not like someone is moving the calls to a later date. A sure way to tell is if the Open Interest in the $35 strike price goes up to about 14700 tomorrow.

VRTX - Vertex Pharmaceuticals is a buy

VRTX which is currently at 52 week low is a strong buy based on technicals, valuation and a probablility of the drug coming to market before 2010.

Look at the trading in the stock and the volume. It's at a great place technically. See the strong volume on up days. Today it picked up in the last 45 minutes or so on very heavy volume. There might be a rumor of a buy out but surely don't trade based on that.

Reliant Financial Networks ticker has changed from RHWC to RFNS

Do take a look at this article. http://www.reliantfsc.com/news/Reliant%20Press%20Release%20-%20Reliant%20Now%20Fully%20Accessible%20under%20the%20Filogix%20System%20and%20an%20Increase%20in%20Mortgage%20Origination%20is%20Anticipated%20-%20May%208,%202007.pdf

" When the system was activated May 4, 2007, the Filogix system had archived 109 mortgage applications that had been submitted for Reliant's underwriting for a total of $33,170,471.77 in mortgage applications submitted. "

This is for a company that has 8 Million in Market cap. They expect to turn a profit by the 3rd quarter.

Take a look at this article. http://www.investorshub.com/boards/board.asp?board_id=5251 and look at the ludlow report. It paints a very rosy picture and expects an 8 cent stock to potentially go up to 12 bucks if they meet targets. Take it with a pinch of salt because everything they talk about is yet to be proven from an earnings perspective.

I think the train has started just based on the new mortgage apps it's processing and it certainly is good news for those of us trying to get in at this point.

Cheers,
Ahu

Blackstone (BX) Opportunity

Does anyone here remember the GOOG IPO and how the IPO price came down from $115 - $120 to $85. GOOG opened at about 100 went to 113 and then back to 98. No one can claim Blackstone to be another GOOG but the way it's trading is almost remeniscent of the Google IPO.

A few things to keep in mind: BX has given a Investment Return of 25% - 30% over the last 20 years. That is right - 20 years. It means that it has legs to ride out any so called debt crunch that the market is imposing. Money Managers in every area are aflush with funds and leveraging (leverage is required for every private equity deal) has become expensive. Markets are overly concerned with the debt leveraging that has been done.

Two things will affect BX. The tax rate issue (15% vs 35%) and they are lobbying against it. The other one would be earnings. In my humble opinion investors will be shocked by how good the earnings will be. Read their prospectus and look at their growth.

BX has fallen from their IPO price. If you buy now, you get a better deal than the Chinese goverment (they bought 3 Bil dollars worth BX). Buy BX.