David, do you think that XIRC might be reacting a little to the up and downs of COMS? On its own, I have it now in a buying range, but I fear the market is over extended and thus await some regrouping in general. Since XIRC has been in a negative trend (except the strong DCB we had from $16) for the last few month, a general high tech malaise will cause it to probably retest the $16-$18 area, IMHO, and that is what I am awaiting.
Zeev
Zeev,
When you compare the charts, it certainly does look like it is reacting to coms. As for your trend analysis and retesting lows, I really couldn't comment. I'm not that knowledgeable of that sort of thing. However, from my research, including input from those here who are much more familiar with xirc then I am, I find it hard to say anything bad about this company. Xirc has great revenue growth, it's the leader in a sector which is growing strongly and the company has been releasing some very positive news recently. Clearly the stock is undervalued. There was no legitimate reason for the selloff last month month. So in that respect, I would think we have a pretty good opportunity here. Who knows whether Xirc will retest $16-18, I certainly hope not. But now for what my gut is saying. I think several factors are wrecking havoc on the market. Trends, ie. net stock selloff after earnings, tech slow down in summer, stocks retracting in between earnings report due to lack of news and the run up before earnings, are getting exacerbated by short term momentum players. It seems to me that this is feeding on itself. As these trends become more pronounced, more investors including INSTITUTIONS (from what I've seen) are participating in this short term grab a point and bail mentality. Who wants to hold if you can be reasonably sure that after earnings, a sell off comes? This scares me, especially if institutions are increasingly doing this as well. Who else can wreck a stock like xirc saw last month? Anyway, my gut is agreeing with you that there probably will be some attractive buying opportunities.
Just my discounted 2 cents.
-David P. |
