Michael, The sentiment by the analysts for this sector are very negative as we have been "bombarded" with for quite some time.
One of the recent changes, however, has been the negativity put forth for 2006 - ie, worse than 2005, and "they" see no recovery until 07/08. Whether this sentiment will turn out to be true, or not, the perception is that investing in this sector is going to be "dead money" for another 12 to 18 months yet.
Not a conducive environment for rising stock prices. In the mean time, most companies are doing OK, and profitable, although not all of them as we know by looking at the weekly Group postings. If the earnings were really lousy, as they were back in 2002, we could probably get to the "long term" bottom that RtS is looking for. Instead, we are likely to be "mucking" around here, not doing much of anything for quite some time.
Don |
