Comparing this quarter's end to last quarter's end reveals that APM was holding above the 23 range up to June 26, when the low volume increased to 1,463,400 and the price dropped to an unbelievably low 22 and 5/8. It then wavered there for two weeks until July 9, when the volume jumped to 3,198,500 and the price rose to 25 and 3/8. It then consistently climbed to 34 on July 16.
This quarter's earnings disappointments seem to arrive a little later and are encroaching into this quarter. We should expect a price increase no later than the end of two weeks. We should go no lower, at the end of a day, than 29. We should expect the price this month to hit 40 (may then retreat).
If this does not occur, then we need to be concerned that the pros' expectations are that the pricing pressure put on WDC will be passed down to its suppliers and APM will have difficulty keeping its margins and maintaining its earnings. If the pros expect that, it may occur and depress the price until the dust settles next year. Still, there should be no significant downside unless there is other bad news lurking. Value line continues to be positive on APM and since I am in at 25, I will continue to hold for 50 or give back the rest of my unrealized gains and sell at 25. They will get my stock at 25.
Unrelated: Got into IFMXE at 6.4, and it is still close to that. If
IBM does not get IFMXE's marketshare, this will be a stock worth holding six months for a nice gain with very little downside. |
