PCP Still in the Race!

It was touch and go yesterday with my PCP call options. I was overweighted and a little nervous about earnings this morning given yesterday's poor price action with the stock. Well, it is better to be lucky than smart!

PCP finished that race to the finish line and overcame a huge hole they built for themselves with the labor strike at Wyman-Gordon. They beat EPS estimates by $0.03, earning $1.67 EPS vs. the consensus of $1.64. They also exceeded revenue targets by five million dollars, booking $1.73 billion in the quarter vs. the expected $1.68 billion.

I guess a few folks were disappointed at open (probably hoping for a blow-out and not getting it) as shares were initially lower, but the big money moved in during the conference call after Mark Donegan gave an optimistic outlook.

For me, the move up has been an opportunity to unload a lot of options. I may not sell them all today, but want to be down to just a few by tomorrow. It is not that I think PCP will not continue to do well, but I think a down market is still in the cards this week.

More on PCP's conference call tomorrow.