Hi Tom,
The street is bordering on schizo these days. Analysts downgrade stocks from buy to attractive, lower price targets (which are still over 100% higher than today's price). Then go into another sector and upgrade stocks to strong buy with price targets 20% higher than today's price. You gotta love it. Nothing like consistency. Since analysts and brokers get paid on transactions, buy or sell, they probably could care less on the implications to others. Gotta make those commissions!! (forgive the rash generalization...I'm sure there's an analyst out there who REALLY cares<vbg>)
I believe it will get uglier, but we are seeing fear in the sector. This is good, IMO, since there needs to be fear, bordering on panic before a bottom can be found.
I'm told that TER just gave lower guidance for Q4, so that's why the stock is off 23% and taking the entire sector with it. What I find interesting is that the past 9 months, TER generated 2.20 in earnings and if the # I heard for Q4 is accurate (64 cents), this fiscal year earnings will be 2.84. I guess this company only deserves an 8 PE going forward from here.....yeah right<g>. |
