To get QNTM this low, there must be some institutional selling. This also helps explain why most funds fail to even match S&P return rate. In general, they are probably more clueless than many individual investors. I think they did the same thing with WDC earlier this year and I was able to make a lot of money riding it up to the 40s and 50s from the high 20s.
Maybe somebody can correct me, but isn't the DLT generating on the order of $1.20 eps or more annually with a projected 100% growth rate. This stock is currently priced below any reasonable valuation of DLT alone, so one can only assume that the people selling here feel that the entire disk drive industry is now unprofitable.
It doesn't matter whether most of the damage is currently on low drive capacity. It doesn't matter if QNTM is mostly on the high-end (4gb+) of drive capacity. This is ridiculous. But then again, its typical Wall Street.
And despite the fact that we dropped on SEG warnings, dropped on WDC warnings, dropped on RDRT problems ... some shorts think we need to drop more based on some possible QNTM warnings. Well, I'd certainly hope that the increased pricing competition is already factored into this price.
Oh well. If we drop again, I cover my Amazon and buy more. Eventually, all the stock will be held by the sane and any institutional dumper will have to pay me a huge premium to get back my shares in January. |
