I'm speculating what WS is thinking... That is, if one can
make 30%+ gains on RMBS, AMAT, RFMD, JDSU, ITWO, SDLI, COMS, in less than a month, why bother w/ CPQ? They can go make some money, after CPQ's another quarter results, one can still get back in CPQ at high 20's to low 30's. One doesn't have anything to loose by not investing CPQ in short-term, but they would miss out on gains in other tech stocks if the money is tied up in CPQ.
CPQ needs to focus on earnings, cost reduction and improved WSR (wall-street relationship).
I was analyzing the last quarter's earnings which came out at 0.19 w/ investment profits and 0.16 w/o investment profits. 4Q is traditionally is the best quarter for CPQ.
1Q is typically is the worst.
CPQ investors are looking for:
- improved profits (above WS expectations)
- meet cost reductions targets
- growth expansions, specially from Enterprise solutions
- clearly articulate what CPQ's future strategy
- be confident about growth rate, estimates
- demonstrate that CPQ stock is undervalued by buying back CPQ shares (enough to increase WS confidence level)
Hopefully, w/ the new CFO, some of those tactical moves will be forthcoming.
Good thing that my portfolio is diversified.
This company is turning around and moving in the positive
direction. The stock will turnaround as well. Time is the CPQ's enemy right now.
-Nilesh. |
