Scott, all the way up there has been daily selling of this stock. Watch the day chart,people are coming in left and right and selling this intra-day. Thursday there was heavy selling in the a.m.,then 2 large block trades(institutional), and the stock closed out the day even. Looking at the buying and selling patterns,and psychology, it seems to me individuals are selling out,they can't take the volatility,and the institutions are buying their way back in. I think the announcement of TCI to spend 1.7-2.4 billion over the next 30 months,was the driving force behind institutional buying.
I think you are rigth about too far too fast,but think the next pullback will be mild,to around 17.5 at the most. P.e. is a function of earnings growth,and this next quarter could be very good, I am hoping we come out in the mid 20's,maybe even high 20's. Looking forward the p.e. could be halved,but on as fully diluted,fully taxed basis earnings will probably be around 80 cents($1.00 on a 15% tax rate).
Tim |
