<<but hasn't anyone learned not to chase stocks??
>>
I Have! I bought NXTL in the low $3's and sold at $6.90 and $7.25, simply because I felt valuation was getting out of hand......love the company and think it survives long term and prospers long term...but, nonetheless, I have to be concerned with the here and now, as well as the long term, and like I said, I took my 100+% ROI and ran like the wind, simply because I didnt feel like EPS was going to warrant such a high current valuation...maybe down the road, but I still dont see how anybody, in this type market where everybody is looking at valuation, in relation to Earnings, thinks NXTL is fairly or undervalued at $10 - $11 a share.....Hey, for all I know NXTL shoots into the 20's...but I wont chase it....if I think she is overvalued now at $10 - $11, why would I buy, even if it goes higher...if she goes lower, I will re-enter, but only at a time and price I feel comfortable with...If I miss it and she rides to the moon without me...so be it..I made a few bucks on it, and there are other fish in the sea....but again, I just personally think NXTL is being valued right now based on future earnings potential, which is all fine and good and may propel the stock much higher, but in this market, valuation and earnings are key, and although nxtl is far outperforming the other telcoms, and will probably dominate the market in the future, I just dont see current earnings equating to such a high current valuation.....In fact, it looks like nxtl is waaay ahead of itself....earings could triple and she still would be overvalued, as compared with the general markets and others in her field....looks like they are putting a valuation on nxtl based on probable EPS 5 years from now, but, thats just my opinion.....I see companies worth 20 million dollars that are setting record monthly sales, excellent eps, low pe's, zero debt and etc, etc....and we have these other companies....all very fine companies, but due to massive floats brought on by the bull market, valuation is still waaay out of hand with share prices 90% off their high's.....this is one tough market.....and again, valuation versus current EPS scares me on this one...I hope I am wrong, and probably am and nxtl will go higher, but as you said, one must learn to be careful in this market and chasing things upward, especially after it went up 200% in a short period, can be either very rewarding, or very dangerous......best of luck to all the nxtl longs...I do indeed hope she goes higher..... |
