Tuesday, May 17, 2005

monday moves

I made two moves on Monday. The first was one I alluded to on the weekend is in regards to Sontra Medical (SONT). I added a decent amt. at $1.25. To reiterate, I believe that the topical anesthesia/dermatology opportunity could yield $8 million in 2006 (very rough est.). A 4x multiple off of that gets you to the present market cap of approx. $32 million. So anything additional in terms of glucose monitoring or vaccine delivery is gravy. I highly recommend listening to cc at sontra.com. Also note that SONT's annual meeting is next week.

I also picked up some Dec 05 MSO puts with a strike price of $30 for $6.80. I did well with some MSO (Martha Stewart) puts earlier in the year and I'm back for more. MSO has huge short interest and moves on "buzz" or "hype" but fundamentally, the shares are worth single digits. I have 6 or 7 months and I wouldn't be surprised to see MSO in the teens come summer (from $27 ish now) If shares pass $30 again, I'll likely be back for more.

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