PRESS MUTE: Big 1380% Return Before Audio Equipment Maker Goes Deaf (JBL, TR)

The audio experts at JBL Inc. (NYSE:JBL) have been kind enough to sing us a profitable tune this week, orchestrated in the key of 2400%.

But before we get there, we have a single trade to close for a nice return.

It was our TR initiative, whose details can be found HERE.

In brief, we’re short a lot of TR stock with a breakeven at $35.79.

And now…?

The stock closed Friday at $33.57.

So it’s time to close.

Buy it back (at the market) at the open, and you walk with $2.22 on nothing laid out.

Adjusted for minimal commissions gives you a return of 1380%.

And that’s a MAN-sized return, brother.

It ain’t meant for the abominators and trans-lucents!

BACK TO BUSINESS!

We’re having a look at JBL’s fundamentals now, though there’s not a great deal to be seen here—

• P/E is first, and sits at a resolutely benign 15.37, though analyst consensus is for that figure to shrink by 24% a year out (11.74).
• Dividend Yield is a flaccid 0.29%, and…
• Price to Book is perfectly diabetic at 5.28.
• JBL carries too much debt, with a Debt/Equity ratio of 1.16.
• The company beat on both top and bottom lines in last month’s Q3 report.

Now look at the chart—

So there you have it.

Another would-be prize-fighter, punching for stardom, filled with guts and hope, and managed by Don King…

May G-d help us.

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew