Re-test of lows because of spooked late comer PENGUIN ANALysts will not affect the longer term outlook for these GROWTH stocks. Its all about GROWTH. For example, look at PALM and NTAP, they are in the same GROWTH mode that will make them recover to higher than their 52 week highs. See MaverikTrader.com for example: bigcharts.com
Today the same is happening to Transmeta, cut in half, maybe it deserves to be cut in half to $5.40 down $7.20 or so, because it will drop earnings 45% or so and its sales are backend loaded and it therefore get punished for not warning......BUT THE QUESTION IS: is this a GROWTH company or not? If so, it is a buying op. I however am busy buying more PALM and NTAP today because they are in a down synch, I would rather DOUBLE DOWN than just jump into TMTA because the answer to the GROWTH QUESTION is you must do more DD due diligence research into the company than the lazy ANALysts that get spooked, are too young and busy attending social functions in New York to do their homework and just throw out downgrades in the hopes of saving covering their butts and saving their jobs so they can afford the next party...yeah, this is really a factor of what happens on Wall Street these days, that is why so many young people were canned back in the 80s, the last big correction. What we need is a RATING SYSTEM FOR ANALysts. A simple graph adjusted FORWARD 3 or 6 months for their calls to the actual historical perfomance of the stock should allow for a performance rating similar to moving average graphs, and then they should be followed, or their opinions discounted accordingly.
I am,
Truly your$,
-Crystal Ball |
