Here's my 2½ on the recent weakness in RCNC... (Drum roll, please.)
We had a bunch of people buying this stock from to low $40s to the mid-$70s prior to the recent overall market weakness. These people were playing the fiber craze, probably without knowing much about how to value RCNC. When the marked tanked, they had to liquidate to cover other obligations. Given the soft overall market, the usual buyers kept on the sideline. This sent the price of the stock reeling lower and lower.
The buyers obviously stepped back in at the low-$20s (a H U G E BUYING OPPORTUNITY, at which point I quadrupled my own long position), and we've formed a fresh base. I expect that the real selling is done with, and we're moving up from here due to a lack of supply (sellers) to satisfy demand (buyers). I think that within the next month or so (maybe sooner), we'll be back in the mid-$40s. A retest of old highs is certainly possible later this year, IMHO.
We have a fully funded build-out through 2003 aided by >$3,000,000,000 in cash, yet the market cap is less than $2,000,000,000. It doesn't take long to figure out that RCNC's prospects are better than it's current market cap dictates.
Regards to all,
LoF
a.k.a. veryLONGonRCNC
PS.. Up nearly $2 on better than average volume at the close. Expect this to continue. |
