The folks trading corl this week do not know corl as well as the group that has been buying in previous weeks. Today's over-reaction to the discussions on cnbc included me but I thought about it a while and decided that nothing has changed about corl other than all the day-traders that bought in this week. Potential of linux and linux-related software for corl is still as huge as ever. The rapid price appreciation is perhaps unjustified and today's reaction, although irresponsibly caused by cnbc, could actually be good for the stock. The pullback gives the technicals a bit of room to pause and breath while gathering strength for the next run. No stock has ever nor can ever sustain such a run as corl had without periodic pullbacks. The gaps must be filled, even with just a bit of volume. The pullback and pause should continue into next week but I think new highs will come about late next week, continuing into the following weeks.
Today's action certainly has a lot of traders talking trash about corl, much in the same way as the cnbc talk did. This is likely going to keep the amateur investors away while the more knowledgeable folks re-examine the fundamentals and come to their own conclusions. Although the recent run has been due to excessive hype about linux, the fact remains that corl has a solid foundation, with lots of cash and most importantly, a superior distribution channel than most companies, and a well-established brand name. Not to mention that its linux products have received rave reviews and record downloads. Heck, even I downloaded the 250MB file. IMO, this is the prelude to the real marathon starting in spring of 2000. It's just difficult for today's traders to sit around for that long. |
