Hi Steve, You had mentioned:
<...what in the world is different about 3Com now at $46 compared to 5 weeks ago when it was at $24, Nothing. 5 weeks ago market participants were not willing to pay 25,26,27 dollars for 3Com. Now they are willing to pay 46,47,48...>
Well, news (real or rumour) sometimes has a strange effect on stock price. For example, when COMS was down at $24, they had just been downgraded by an analyst due to earnings. Also, the merger w/ USRX was still under review by SEC (not yet approved). 5 weeks later, they had been upgraded by an analyst on the basis of higher expected earnings. Additionally, the SEC had given final approval for the merger. COMS also announced some lower cost frame relay devices and switching software. Plus, they won some 'Networld' and 'Network Computing (editor's choice) awards. They've been busy bunnies over the past 5 weeks. Oh, and we had a bit of a market rally which helps, and last (but not least) those Giants have been kicking butt at 3Com stadium (humor). You might want to pick a better example.
<....Regardless of Iomega's fundamentals, unless market participants are willing to pay 18, 19, 24 etc Iomega will go nowhere...>
Hmm,..you mean unless people buy more IOM, then the price won't go up? I guess you're right...it probably won't go up until it goes up. That's an analysis that few of us, I'm sure, have not considered.
<...I can also assert that Iomega's non-performing stock price will actually begin to hurt their fundamentals at some point...It can also be demoralizing to executives who watch their company stock go no where...>
So many 'maybes' in this statement (readers, refer to the orignal post) -- acquisitions of other companies and so forth -- that it's purely conjecture. Iomega's fundamentals (good or bad) could affect the price. But I can't see how the stock price can drive the company, i.e. affect its fundamentals.
That's just plain backwards
-MrB |
