בס״ד

96% PROFIT, While The Batflu Hammer Drops on The Credulous (KAI, IYT/DIA)

Posted on April 5, 2021

Before today’s trade, we have one to close.

Our IYT/DIA pairing finally closed last Thursday with a clever little profit.

The details of the trade can be found HERE.

In short, we were holding two short DIA April 1st 335 CALLs and a credit of $1.72.

The CALLs expired OTM worthless and we walked with the cash.

That’s $1.72 net on $1.80 laid out.

A profit of 96%.

And that beats an April snowfall, any day.

Today’s trade is based on Westford, Massachusetts’ Kadant Inc. (NYSE:KAI), makers of industrial machinery for nearly every application going.

Without boring you with all the unnecessary details (and certainly without a discussion of the company’s ‘conveying and vibratory equipment’ or its applications for ‘oil and grease absorption’ – we’re a PG rated outfit), we’ll have a look at the fundamentals.

In a word, they’re overdone.

  • P/E is 39.17,
  • P/B is 4.34, and
  • Dividend yield is a mere 0.53%.

But what’s in a number, right? – in these days of Batflu-bolstered market bunk.

Pictures are better.

Try on this one –

With kind regards,

Hugh L. O’Haynew

 

Leave a Reply

Your email address will not be published. Required fields are marked *