The science of Econometrics would have a 'dialectial somersault' in trying to devise a formulae to fathom the chaos associated with short term investing. There is no proven formulae but luck and fraud. Short of these two variables I would be very interested to know how you can ascertain whether a stocks price will move 5,10,or 12% in any particular day. Sentiment is a major factor but how do you gauge this variable. Do you log on to techstocks.com or yahoo.com chat rooms associated with a particular company to measure the disposition or proclivity or do you listen to the Market Makers and Analysts.
With a market capitalization of 9 Billion, Sales of 6 Billion, over 2 Billion in cash reserves, almost no debt, greater book value than CSCO or ASND(prior to its recent acquisition by LU), substantial capital gains with its investments in companies such as Juniper etc., with a household name still the envy of all its peers, COMS will prevail very well once it has ferreted out the heretics. Straddling the fence of opinion serves no one but chaos, and it is in these moments that the Vultures on Wall Street seek.
The current course COMS has taken to capitalize on the new wave of Broadband and Wireless technology is very sound. Their vision is very well documented and the consensus in the capital markets seem to support COMS vision, but uncertainty as to how long this will take is what has dampened enthusiasm toward the stock. If you are going to buy COMS this is the time to buy. Your dreaming if you think the stock will fall below $23, that is, if it goes any lower. It is not the institutions that are selling but individual investors who are not used to being patient.
I have too often sold when I could have made substantial capital gains only because I was a fool to heed to these Analyst. The best time to buy a company is when over 50% of the Analysts have a hold position on a company that has good fundamentals. It leaves plenty of room for upgrades and hence, substantial capital gains.
IMHO |
