Ray, I have no idea where the exact bottom will be, but some things to look for are a blow off day on big volume with a noticeable reversal and a close at or near the high. I could easily see that happen if Cabot puts out a sell near 20. Another thing I look for is a higher high than the previous day. I tend to be contrarian, meaning, I do the opposite of what the investment community would have you want to do. For example, the houses are starting to hate CYMI. The lead underwriter just gave put a hold on it, which is about as bad as it gets on wall street. Why? Because these houses don't care about anything but money. They want commissions and they want underwriting. They will like CYMI again, but the time to get in CYMI is when the hate is deepest, because CYMI really is a good company <I am discounting what INFRAS says because I don't really know whether it is right or wrong>. When they all love CYMI, that is when they want to sell you the shares they bought cheap when they said they hated it. I have seen this happen time and time again. I think there are a few more downgrades coming, as a few of the houses haven't spoken yet. I did know what was happening Friday even before the stock opened, andI heard the news, as when I saw that gap down, I knew it had to be MSCO.
I like the fact that CYMI isn't coming out with press releases every day and acting desperate over this, as quality companies don't need to do that, the numbers will speak for themselves. As I said before, my buy stop as of now is 26 7/8, and will be adjusted as needed. |
