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Dykstra: EDS Calls March Forward

The computer services company is set for a solid hit.

Since the Phillies passed the Mets for the NL East title, I guess almost anything is possible. And in the markets, even with the news that Citigroup (C) - Get Report took a huge hit in subprime, the broader markets plowed ahead.

Following the


rate cut, this market cannot be stopped. Broad strength brought the

Dow Jones Industrial Average

and the

S&P 500

to record levels and deep-in-the-money call premiums to increasingly higher levels.

In such conditions, I seek opportunities to capitalize on the extreme fluctuations of the markets.

Electronic Data Systems


is a great example of an overly trampled stock. The market tends to exaggerate its extremes, and stocks reach higher highs and lower lows than fair-market value would dictate.

TST Recommends

Electric Data Systems provides business-to-business services for a variety of industries including manufacturing, health care and energy. The stock presently trades with a price/earnings-to-growth ratio (PEG) of 0.65. When a company boasts a PEG ratio below 1, investors should look for the chance to invest cheaply in rapid growth.

Also, the company recently announced an early-retirement program. In the short term, this will increase costs; however, it will provide a considerable boost for the company's bottom line over the next few years.

In order to be well positioned for a potential bounce in EDS, I will place a limit order to buy 10 March 17.50 calls (EDSCT) for $5.00 or better.

If the order fills, I will be in control of 1,000 shares of EDS common stock, which closed at $22.10 on Monday, all the way until the third Friday of March.

Game of Life

Consider life as a heart, its pulse representing the rhythm of our daily lives. Thump, thump, it pounds, engorging with the activity and flow of society. Sometimes it beats more quickly, and sometimes the pace of our lives is relaxed and slow. It depends on the day, the hour, the minute, or even the second. Regardless, the world keeps turning along with the thump of its pulse.

It was a normal September afternoon for Andy Buff as he came up to bat in his Carolina Buccaneers Little League game. He squared up his shoulders to bunt, and before he knew it, the pitch had hit him right in his chest, knocking him unconscious. The condition is known as commotio cordis, whereby a chest blow interrupts the normal heartbeat and triggers an arrhythmia, which is often fatal, especially at Andy's age.

Luckily, an assistant coach of another team was a doctor and rushed to Andy's side to administer CPR. By this point, Andy's pulse had disappeared. After two tries, Andy lay motionless. Fortunately, after the third attempt, he regained movement in his arm and screamed, "Dad!" and muttered something about missing the ball.

Andy spent two days in intensive care and returned home expected to make a full recovery. He's anxious to get back on the playing field. In this case, the playing field represents more than a mere baseball field, even if Andy didn't intend its metaphorical meaning. Playing in the game of life is a risk every day. Who knows when you can be the one who is hit with the curveball?

Moments like these force us to assess our own lives and, even if it's just briefly, force us to reconsider our appreciation for being alive. The pulse of our lives can cease at any moment, and not all of us will be as lucky as Andy. We expect the rhythm of our lives to continue as it was the day before. Certainly, we're forced to digest the ebbs and flows of living, reacting more quickly sometimes, but very rarely do we consider the possibility of the pulse just suddenly stopping.

The Players Club understands the nature of life's pulse. It's not worth worrying about every moment, because worrying will not change the outcome. Some things in life are simply unavoidable, which is why we should live every moment like a little kid playing in a Little League game: with the purest joy. By guaranteeing recurring cash flow to professional athletes, The Players Club ensures that finances will be one pulse that never stops beating. As the days go by, embrace the changing colors of the seasons' pulse. Keep in mind, your heart is still beating -- thump, thump, it pounds.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in stocks mentioned.

Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."