John,
No, it does not surprise me. This market is not only a great bull market but a greater momo market. Notice a few stocks that are being bid up to absurd levels lately~ CIEN, TERN, RMBS, INSP, etc.. (there are many others naturally)
They are being bid up because fund managers and individual momo traders pretty much know they will not miss this quarters earnings number, more that that, they will probably exceed it.
So these momo traders think, "Wow, they may REALLY crush the number! I have to buy more". The insane buying continues until they do report their earnings.
Then investors do one of 2 things, after they have bought a basket of momo stocks. They look at earnings for these momo's and ask did they exceed estimates? And by how much?
If the answer is no, they sell all of that stock.
If the answer is yes, they just keep buying until they miss, and the insanity continues regarless of price, or P/E, etc....
RE QCOM, remember Dr J's "slump" comment? Well, no more momo here for the ST. They all left this party and moved on to another. But we were part of the momo party for quite a while, wasn't it nice!? The hangover is still pretty bad over here though, can't you feel it!?
Evryone have a great weekend!
MileHigh |
