A Trade

Picked up some WFR today as the stock was down heavily after earnings that was slightly better than expected at least on the bottom line. As readers know I have had my eyes on this stock for a while. Q1 earnings was up about 100%, the stock is trading at an expected 2007 PE of 18.50 and has exposure to the hot solar power market. With a PEG under 1, this opportunity was to good to pass. The very smart James Altucher has done some interesting work on gap-down trades which further adds to the case.