Some simple things we can probably all agree on to keep in mind at a time like this:
1. At 200, Q was 2x the 50 day moving average, which certainly put it well into the over bought range.
2. At 200, Q was at 175 times current years e estimates, with a growth rate, according to management of about 50%. Again, red lights were flashing.
3. At 100, Q is now selling at about 83 times this years e. Not high at all for a 60% grower.
4. At 100, Q is selling at about 55 times next years fiscal e. And next year is beginning in October. By the end of this year, Q could go up 70% from here and only be selling at 100x fiscal year earnings.
There is always a lot of woe associated with huge paper losses. But the appropriate response now is to start buying, very carefully. If this gets catastrophic, like Q gets to 70, it will be insanely undervalued. By ready to take advantage of it. It could happen. But Q will earn about 2.75 in 2 years according to managements guidance. Therefore anything much under 100 is going to work out very, very well.
(not directed at anyone. this is when we need to review solid fundamentals)
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