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Yes, there are risks associated with the Asian market downturn. Yes, the stock market still has a lot of downside potential. Yes, CUBE is vulnerable to both of these things. However, on past days (esp. Oct 97) when the market has corrected due to Asian fears, there were several stocks that were slammed harder than they should have been to justify renewed fears. Soon after the panic settled, they all rebounded to reasonable levels. CUBE was down almost 20% today...a bit much in my estimation considering nothing terribly dramatic has happened within the last 24 hours. They have a proven track record, solid growth, solid earnings, and a low PE (esp. now) for a company positioned so well to take advantage of emerging digital technologies. A 5% drop would have made sense, but nearly 20%? I bought a slew of Nov. 20 calls in the low 1's late in the day, hoping to make a fast profit when the stock rebounds to accurately reflect recent worries. Any opinions on this? -Ryan Bartholomew |
