This post was just published on ZYX Buy Change Alert.
TIBX is up for sale and if it does get a buyout offer it is likely in our target zone of $26 to $31. However, there is a risk event in terms of earnings this Thursday. The probability is very high that the company may report earnings below consensus.
Since our focus is on generating high risk adjusted returns, it is best to take profits on TIBX right here around $21.25. The position is long from $19.15.
The plan is to buy TIBX again if it gets hit on poor earnings.
There is a risk in this action in that earnings may not turn out to be bad and the company may get a buyout offer before there is an opportunity to buy it again. When it is all said and done, there are no certainties in the market, in the long run, investors who focus on probabilities determined based on a rigorously analytical method such as ZYX Change Method come out ahead.
