Closing Three For a Mammoth Take: 4300%, 3225% & 700%! Where There’s a Stink, There’s Opportunity! (IPAR, TPX, AJRD/LHX, TEX)

We’re riding roughshod over one of the smelliest corporations on the planet today, but first, we’re breathing deep the sweet scent of loot!

We start with our TPX trade from February 23^rd.

The letter was called Nighty Night, My Sweet Corporate Irradiator, and it urged you to sell the TPX June 16^th 40/42.50 CALL spread for $1.20 and buy the TPX June 16^th 42.50/40 PUT spread for $1.25.  Total debit was $0.05.

And now…?

The PUT spread can be sold for $1.30 (6.70/5.40) and the long CALL for an additional $0.90.  The short 40 CALL is out-of-the-money at present, and we believe that’s where it’ll stay.

Should action be required, we’ll inform you, but until then, we’re booking the trade as closed with a hefty take of $2.15 NET on a nickel spent.

And that’s 4300%.

Git it on!

Next is our AJRD initiative, whose details can be found HERE.

As you know, AJRD is being acquired by LHX, and we therefore veered the trade toward that latter entity as of February 17^th.

Currently, we have a credit of $3.95 and are holding the LHX May 19^th 200 synthetic short.

And…?

We say it’s time to unload it.

Buy back the short CALL for $8.00 and sell the PUT for $10.70 and you step away with $6.65 NET on just $0.20 laid out!

And that makes for a very tidy 3225%.

Our third closure pertains to our February 27^th bet on TEX.  The missive was called Industrial Fakery and it recommended you sell the TEX July 21^st 55/60 CALL spread for a credit of $2.50 and buy the TEX July 21^st 60/55 PUT spread for $2.80.  Total debit on the affair was $0.30.

And now…?

The long PUT spread can be sold for $2.40 (14.00/11.60) and the short CALL spread left—for the meantime—to dissolve.  It’s currently better than 22% out-of-the-money.

We’ll be watching, in the event that action needs be taken.

Until then, consider it a 700% gain.

Not Bad At All…

And now we venture forward.

Today’s excursion brings us to the factories and warehouses of Inter Parfums, Inc. (NYSE:IPAR), killer of whales in the manufacture of fragrances and fragrance related products in the United States and internationally.

And why are we breaking such expensive bottles today?

Let’s start with the fundamentals—

• P/E is 36.22 (which makes little scents),
• Dividend Yield is 1.83%,
• Price to Book is an odious 7.08(!), and
• Price to Free Cash Flow comes in at a leviathanic 257.09.

IPAR announced earnings three weeks ago on February 28^th, after which the stock flew immediately higher and then got stuck.

It’s now giving off a rather rank odor.

Check out the chart—

Otherwise, you run the risk of having it cattle prod you.

If you know what I mean.

G-d bless all you good Jews and Noahides.

And let the profits keep coming.

!ה’ הוא האלוקים

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew