I think RSYS is securely on its way to fill the gap left between the close on Friday and the open on Monday, about 47 - 51... A lot depends on what you consider a decent return... That's very much an indiviual decision. If I bought in at 45 1/2, then I'd probably try to get 10% for the risk involved, say sell at 51 when the gap completely fills.
Because J.P. Morgan set their target at 52, it's going to make it difficult to get past that point. A target is supposed to be the highest possibility of the stock price, not a plateau. A target is only reached briefly and then the price falls back quickly.
Before they (J.P. Morgan) made that statement, I thought we had little resistance after getting thru filling the gap to about 54 3/4. All of these resistance levels (say 47, 52, and 55) are possible turning points where we could go down and test the support level again. Each trip down has to hold at 43; and if it doesn't hold there, it must hold at 41 or get out. Each trip down gets scarrier... ...unless you sell at the top of the channel and buy back at the bottom of the channel. Then, you enjoy the roller coaster ride... I haven't succeeded in doing that very often. I was doing it with USRX but got exhausted and had to get off...
So, I think we're going up short term. However, I don't know about the intermediate term. Something has to change fundamentally for me to figure out the intermediate term trend. The PE is gettin' to fairly reasonable levels, especially relative to the growth rate of the company. But, the earnings info is suspect, even if unjustly so.
I think the cost of the litigation is insignificant, less than one third of 1% of annual revenues... The damage to the Company's credibility is what is hurting stockholders now, but the market's memory will probably be short lived on this...
Alex |
