Chuzz- I reckon the rise is a result of all three (short covering, day traders, AND fund managers putting last quarter behind them)...
I don't know/think...though..that this rise is necessarily temporary....although I know you are not a fan of this new market.....a couple of thoughts...
- Many, some fund managers look heavy at technicals..without question, the technicals have improved quite a bit on this stock in the past couple days...
- In the first two months of the year, there has been nice increases in many small, mid-cap tech stocks...the values of many "nifty 50" are in such rarified air, a lot of $$ are looking for faster growing, smaller companies...even if the P/Es are off the charts....the logic, I guess, that huge growth can catch up to the P/Es at some point...data definently showed this trend in place...since Legato got taken out and shot, it became a lot more attractive for much of this crowd...
- If you look at the stocks that have gone up 10, 15, 20 times in the past couple years...almost all were technology (with some internet slant) AND started the rapid accent (or at least accelerated it) when the companies were in the 1-3 Billion market cap range (or so)....just big enough to make it on the screen of the large money managers...small enough to run (market cap) at huge multiples for a while....and not have fund managers gulp....Just a layman's view, but it appears no one really worries about market cap when a stock is in the 3 Billion-30/40 Billion range.....after that, more thought put to the issue (I'm not saying this is logical..just the way it appears to be)..
So, LGTO fits nicely in these categories.....all 3 trends are going to continue, IMO.....I am not surprised that many find it attractive here....I think we will likely pause in the mid-40's...but I don't see the stock going below 40 after today......too many buyers will come in near 40......unless they miss another quarter (or give significantly reduced growth rates going forward)...
Now, if Tyco would only announce the inquiry's over, we might get the same action <G> Thanks again... |
