There is an old rule of thumb: don't bet on the stock that was the big gainer last year, and don't count out the one that was the big loser.
I wouldn't trust David, despite his prescient call, because he was wrong for some time LONG before the stock hit his number. He had been short through the 2 years of a heavy bull market and he was ONLY right on CNXT AFTER 10 months of crying wolf....so his record isn't so hot.
I think CNXT is an even better bet at these levels than ever before, and have continued to buy more with my ORCL gains. Once again, despite the media's attempts to make this look like a dead tech market, and to make the economy look like it is dying....both are still in solid shape. The problem was 2 fold: there WAS a slowdown, but it wasn't too bad, and forward estimates got too optimistic.
That doesn't mean there is trouble. It means that when times are good, people think they'll go on forever.
Thing is, you'll see this economy snap out in no time.
BTW, David's calls for increasing energy prices have been wrong since I put him on ignore. They are barely changed since he and I first discussed them back then. So, don't count on energy to push this economy over the brink (like Qaddafi is calling for), it just won't happen. |
