Matt & JDN, Matt, I agree with you. Boca's book value is around $6.5 a share. If this stock goes down into the 6's something is wrong. This stock is getting a double dose of market downturn. First, the tech sector as a whole is getting hit, especially the networking stocks. Look at today, stock is down 5/8 on small volume and no news. Small investors panicing. Second, it is getting hit because of the product transition, to the 56kb. This stocks earnings estimates are .71 for next year. At a PE of 20, that is a stock price of 14.20. Double what it is now. That to me is a buy.
JDN, your in at 18. I would say your risk of dollar cost averaging down now is minimal. Your right, at 18, you will be in this stock a while. But, average down, and you could find yourself in the black in 9 months. |
