Bought in yesterday ( I was the one right before it dropped from 36 to 34) <gg>. still don't understand the low valuation. Any history would be appreciated.
From the COMS thread
"Big-picture analyst paints ugly market portrait"
"Kent Engelke of Anderson & Strudwick doesn't like what he sees for the
broader markets in Q4 2000. So he's focusing on stocks like Boeing and First
Union that tech-investing hobbyists are apt to overlook. "
By Eneida Guzman
"The tech sector looks like a huge value play these days. Do you like
anything there?
Anybody who's thinking that they can buy Intel (INTC, news, msgs), Microsoft
(MSFT, news, msgs) or Cisco Systems (CSCO, news, msgs) right now and
make money is kind of foolish. This is an old statistic. Back at the end of the
second quarter, 92% of all equity mutual funds owned Microsoft, Intel and
Cisco. The basic premise to make a stock go up is that you have to have more
buyers than sellers. When 92% own a company, who's left to buy it as it
drops? Obviously, no one, as is evidenced by what's happened recently. So
what do we like? 3Com (COMS, news, msgs), Cypress Semiconductor (CY,
news, msgs) and Compaq Computer (CPQ, news, msgs). All three of them
have earnings acceleration. All three of them have market strength. All three of
them are trading below their productive assets. Productive assets is
shareholder equity plus long-term debt divided by shares outstanding. If this
value is lower than the actual share price, we determine relative earning and
market strength. I believe monies are going to go back into the tech sector, but
it's going to be very selective.
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