Good Morning Everyone,
Even after yesterday's really pathetic performance by the all the networkers, there are still a lot of bulls out on this thread who seem to think that if they say, '3Com has bottomed,' long enough, that it will come to pass. C'mon guys....to me at least, it looks none of the networkers are bottoming, but rather the selloff is picking up steam and, wheras last week, it seemed only company specific, now the whole sector is being dragged down. Both Ascend's and 3Com's 100 day EOM are now negative....this combined with both stocks negative 13 vs. 55-VAMA constitutes a very reliable technical longer term sell signal for both equities. Cisco ain't looking too pretty either.... yesterday's trading on the equivolume chart is a long powerbox to the downside that penetrated the 55-VAMA. CSCO's 13-VAMA is currently at around 77 and the 55-VAMA at around 76 1/2 so another day or two of selling on heavy volume will send this important long term indicator negative. Just looking at the price and volme action, I would say that this intermediate correction in the networkers is not yet over. For bottomfishers looking for a quick 30%-50% profit in 3 months with little downside risk, from a purely valuation standpoint I would not touch any of the networkers until the forward P/Es contracted a bit more. Even if the technicals were still awful, I would buy COMS with a forward P/E of 14-17, and CSCO with a forward P/E of 24-28. I wouldn't buy ASND. Best of luck to all the COMS longs on the thread.
Christopher |
