regarding CUBE's pice drop:
i believe individual investors who had follow the market for a long time
and know the balance sheet. have step in since the 48-52 level and
buy cube on the fact that it is undervalued at the current growth
rate and P/E , earning estimate. (these are namely the fundamentalists
who hangs on to their stocks for long-intermediate-term purposes.)
they check to see if the stock has good growth rate, good product,
inventory or debt problem, and class-action suits. in all these respect
cube come up as a winner.
however, we have to taken into consideration the other side of the
market. which is the momentum players. on top of the blind-momentum
followers like cabot believers, we have the technical analysis pro's. these
are the so-called market whiz who make profit on quick real-time market
trade and chart analysis.
cube high bid-ask spread is a perfect target for these market whiz pro's.
manipulation is most easiest when you can access instinet and other
supplementary trading markets. the pro's spot imbalance and make quick
arbitrage.
mentality among trading whiz pro's is "follow the trend." when there is
a downtrend, pro's gang on it, raid it, and f*ck it, until every possible
dime is squeezed out of the market. that's why most of the price
movements are vastly overdone. one sell triggers more sell and then
you have the public jump in and sell in wash panic.
all of these are highly unhealthy to cube's stock price. and, i will continue
my venture to advocate long-term investment support for cube.
cube is my most worrisome position. i don't have similar problems with
other techs who prove to be able to expand their growth rate through
time. (sunw, cisco kid, orcl, usrx--its ok now since its on a up-trend).
in order for cube to come out of this initial hype-momentum-buy stage,
a major correction such as this one is inevitable. until, we see more
investor long-term interest in cube, i would think the stock is unhealthy
to operate on (i mean short-term trading). cube does not have much
share float, this is making it much easier to manipulate. |
