Okay Karl, that makes sense. I didn't take notes on the CC (was too tired) so I'm not surprised I misunderstood that.
If you're interested, here's some more stuff not related to what you commented on:
Mostly on a technical basis I sold my COMS options yesterday afternoon. I know (for those that saw my post) I stated yesterday that all in all I felt COMS would move higher. But not long after that I took the profits I had in the options I bought. I still do think COMS will be going higher (to 65-70 range) within a couple of months max, but the immediate term facts yesterday were this:
1) For one or more reasons, several analysts lowered EPS numbers for this FY ending May. I suspect one of the reasons is that Coms revealed (when asked) in the CC that the number of shares to be used in calculating EPS going forward would be an additional 6M shares each quarter going forward. Not a major deal, but dilution is a negative, and it does affect EPS estimates.
2) The volume was huge yesterday, and though COMS posted an increase, we closed lower than we opened. (this is the bad technical action I saw - stock under distribution, at least for the one day).
3) The Nasdaq has been on a huge run lately, and for a stock that posted earnings in line, it's not a good time to make another advance on top of the 4 days of increases (albeit from a low support point).
4) I was in USRX, and I remember hearing "it's going to be a 2nd half of CY 1997 story for them". Now Therese Murphy of Smith Barney says about COMS "it's going to be a 2nd half of FY98 story for COMS".
5) It's uncanny how the mean analyst estimate is so accurate with COMS. It was similar with USRX. So yesterday we had analysts lowering EPS views. So.....we're almost bound to have a healthy respect those views, based on prior history.
I'll be looking to get back in when it looks like COMS is on sale.
FWIW from me too,
DK |
