Presstek is at 76, -33, as I write. In a quick scan of the stocks that were recommended by Cabot they all seem to be down today. Some of them are really down! I think that we are seeing more than a correction of the recent runup of many of these issues -- IMHO this is panic selling, at least as far as PRST is concerned. I have no position in PRST, so I am thankfully missing out on all of the turmoil that the latecomers must be going through.
Iomega is also down today, but (at least as of this writing) seems to be fluctuating within a normal spread for this stock. I would feel better if it was fluctuating up instead of down, but there are many facors besides Cabot that are influencing IOMG. I think it is still shaking out from the 2nd issue at 35. Is IOMG priced to high? I suggest you read many of the previous posts on this thread to decide that for yourself. You will find many technical analysis if you look back at the previous posts. I hold 2030 shares of IOMG and am a long term investor with this company. I will continue to hold because I believe that Iomega is much more than a "momentum" stock. Iomega is a company with excellent management, a great product, and a wide open market.
The answer to your question: I think (with no concrete data) that Cabot will come out of any investigation just fine. A lot of people use Cabot as a resource when deciding which stocks to invest in, so when they recommend a stock, that stock tends to become much more active in the short term. This phenomenom can also be observed in conjunction with comments in the WSJ, NYT, CNN, or the Motley Fool. I am wondering today if people are discounting Cabots recommendations and trying to distance themselves from any stocks that they recommended?
Choose companies with strong fundementals that you believe in.
Tom Tuggle |
