Another July market high?
In years recent, general market highs have been put in during July, followed by a weak August and September as the earnings news is out of the way. For some it will be early tax selling, then getting back in a few weeks before the election for the seasonal holiday season market run ups.
As for quality company, that is very true. So many other companies in the marketplace can make that claim, but their accompanying stock prices as well are not quality. It is the Jekyll and Hyde syndrome. There is a disconnect between the fundamentals and all. Many would say that the stock will eventually "catch up" to the fundamental story, but in reality, it can catch up the reverse way just as easy in the future too. (Not meaning GNET in particular) Or the market can just keep saying "so what" for far longer than seems reasonable, especially if any news is far between and discounted soon after. Extrapolating or timing how things "should" look a few years out can lead to dissapointment if cold objectivity is thrown out the window.
What is disconcerting (still) is the poor relative strength performance. From October of last year, GNET has underperformed major nasdaq up moves badly, as once again shown by the recent 1,300 points up, yet this is still where it is from April basically drifting in a "super comfortable" lower range. If the market corrects again before year end, that may not bode well again, though certainly not to the extent of the April fast destruction.
p.s. J.Z.... thought you sold some months back out of frustration, was that just your trading position you were referring to?
p.s.s. Was there any news on the conference call about the progress of the new HQ? |
