DARK HORSE HEDGE – Move on, FRX Buy/Write, RDWR

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DARK HORSE HEDGE – Move on FRX, Buy/Write RDWR

By Scott Brown at Sabrient & Ilene at Phil’s Stock World

Told you that forever was a word, I couldn’t say
I don’t know ’bout tomorrow ’cause I’m livin’ for today
You’re every inch a lady and you’ll always have my love
You listen, you can hear, her voice is callin’ from above

Move on, that’s what she told me
Move on, keep on movin’ – Paul Stanley

First and foremost, Happy Veteran’s Day and belated Happy Anniversary to the Marines (yesterday).  No words can express the gratitude Americans feel for all Veteran’s before us, now and to come.

In lighter news, Forest Laboratories (FRX) has been in the Virtual Dark Horse Hedge portfolio since July 26, 2010 when we purchased a 7.5% position at $28.21 and sold a November $29 call August 17, 2010 for $1.35.  FRX is currently trading at $32.76 so by closing the now premium-less $29 call for $3.76 and selling FRX we can take the profit, albeit small, and move on.  In other cases we may have recommended rolling the call forward to another month and continuing to earn time premium but following Pharmboy’s article, Looking at the Trees in Forest Laboratories, and other miscellaneous events, we feel we can replace FRX in the virtual Dark Horse Hedge portfolio with a company that can appreciate more. 

BUY TO COVER, FRX Nov $29 call, at the market, Thursday, November 11, 2010

SELL Forest Laboratories (FRX), at the market, Thursday, November 11, 2010

Radware, Ltd. (RDWR) is our new interest and we are replacing the now departed FRX with it. Radware develops, manufactures and markets integrated networking solutions that allow its enterprise and carrier customers to deliver mission critical applications between data centers and remote locations, over all critical points in their networks. Radware solutions include Application Delivery and Network Security solutions. (See Sabrient’s RDWR report.)

The following text is quoted from a soon-to-be published article by David Brown on Sabrient’s Top-10 Earnings Busting stocks. With David’s permission, we have scooped in to preview an advance copy and we’re taking off with one of his top 10 choices.

IT managers are abandoning their physical servers and

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