Your last sentence says it all, "bubble to burst"
These stocks have gotten way ahead of themselves based on future perfromance and market perception. There were a few good news releases and some of the filters have been sold, installed and are working well. We might be on the launchpad, but as you stated, it might be awhile before revenues, sales, earnings, etc. catch up with valuations.
But for now, we find ourselves in a situation where we entered these stocks prior to the psychotic exuberance and are hanging in there until we see a reversal. as long as people are chasing these stocks, we are racking up profits. As soon as some sanity returns to the market, we will sell into weaker hands. This sort of reminds us of ENMD that was $12 on a Friday and $85 on Monday basedon an old reprinted article in the Science and Technology Section of the NY Times.
At current valuations, we are playing roulette and black has come up for the last 8 spins, we will play black until we see red.
SCON and CDTS are fortuitous since we let part of the RMBS run up get away from us. But the profits from SCOM and CDTS will fund some of the entries into the equipment sector real soon. Both stocks have far exceeded our expectations sowe know we are living on the edge.
AV |
