Earnings matched estimates at 33-cents a share, while the company tweaked 1st quarter guidance to 28 to 30 cents a share vs consensus estimates of 31 cents. I just couldn't bring myself to pull the trigger ahead of the close to do the calendar spread even with the stock trading at about 35x forward earnings or at close to its 2000 bubble peak highs. During the conference call management stated that the 2007 upgrade cycle is on track and that was enough to send the shares surging past $43 this evening. Here's a 20 year view of Adobe:
ADBE is on its way to breaking its 2000 bubble top... a distinction shared by few other Nasdaq stocks. While I'm open to buying into the idea that that the Macromedia buyout is bearing much fruit, in this turbulent times I'm still keeping that directional put play open as an option. I'll also be quite intrigued to see how Am Tech handles things tomorrow. They're the firm that put the "Sell" rating out on ADBE last month with a $33 target. Will they stick to their guns?