Soros, you may be right, logically, but whether the Market decides to THINK and ACT logically is another story.
Remember there are many, many overvalued companies out there. A fairly large percentage of techs are losing money and their stocks typically have been going up when they announce earnings that show a "narrower loss" than expected (i.e. 23 cent eps loss versus 26 cent loss that was expected).
CSCO is a bellweather and there are many people who know that if CSCO falls, the whole market may have to go through a re-evaluation. Don't get me wrong if we want SUNW to be at $3 and CSCO at $8, MSFT at $25, AMGN at $25 and many other stocks without earnings at the penny stock level, fine.
In other words, I am not arguing with you, just wondering if the Market is ready to punish the 100's or 1,000's of overvalued stocks that trade at a higher P.E. (or even a negative PE) with a much worse margin, growth, inventory, cash and/or liquidity situation than CSCO.
I guess we'll see.
Do you see my point? You often have to THINK in ways that are not always logical. |
