Whether or not your NASDAQ prediction holds true or not is one thing. It should be noted that the stocks you suggested to the thread all have PS ratios at (ISSI) or under 3 (all the rest). Notable in your list are NANO and ISSI which have recently shown net income to sales ratios(NI/S) of 17.8% and 16.5% respectively. NITE, with a NI/S=20.6% is very high but I wonder about revenue growth as a driver of earnings going forward, especially in a bear/down market. AVT and ACTM look very interesting with P/S of .2, .35 - PE of 9,14 and PB 1.1, 1.8 but I'm not sure they will be able to sustain the recent revenue growth rates which could lead to tough yoy comparisons in the future. ADM has had a great run but at first glance the chart is starting to look toppy. The strong trend line up is starting to bend to the right. Not necessarily a top but I would be watching my position very closely since the run will probably be greated with profit taking. Note: I don't closely follow any of the above stocks with the exception of ISSI and ACTM, which I track on a daily basis in a few different watch portfolios.
kb's selections, well, I'm not so sure about these guys<gg>. INSP, NETA and LPTH all have serious losses in the earnings column and like kollmhn pointed out, earnings are very important going forward, especially in bear/down market.
NASDAQ is near or at a very important short term "bottom". I'm not sure this bottom will hold and therefore I would strongly suggest caution going forward. At the same time, there are stocks that have terrific futures ahead of them and they have sold off mercilessly. For those who lean toward the buy and hold long term approach, we are starting to see some solid companies getting close to value levels, IMO.
I still think we are in a traders market and that short term thinking is the safest approach for now. I won't discount NASDAQ 1800 or 1500 but I will be a bit surprised to see the selling continue that far down the chart. I'm only 50% invested in the market at this time with plenty on the sidelines.
I would like to encourage the new thread to post on as many issues, sectors and market trends as we can reasonably deal with. If necessary, we can spin-off discussions onto sector specific sub-threads if the HTP thread builds a sufficient following to justify this action. |
