Tony said,
" Stan, the volume does not indicate a 'blowoff'. There are blowoffs
at tops as well as bottoms, take a look at the volume when iomg was
at the top. "
(I assume Tony meant that the 'current volume in Iomega' doesn't
indicate a blowoff)
I agree, a climax top or bottom is signaled by:
(1) a large move (up or down, with lots of gaps)
(2) Very large volume.
On the day iomega touched 55 (or so), the stock traded 22 million
shares, and was up 10 points. This was the day the Acer deal was announced).
That was the top, and that was the day I bought puts (I'll tell you,
I wish I bought a hell of alot more.. but I protected myself fairly
well)
I don't think we have hit the bottom yet. Volume isn't large enough
yet, and the drop is too 'orderly'.
Lastly, for those of you waiting on Q3 results, don't hold your
breath. I have a feeling it's going to be very bad. I think the
slowdown is even sharper than the people on this board think it is.
To you 'long term investors': ignore the charts, and wait for Iomega
to get to 'fair value': 1x sales is about $8-$10/share...
good luck,
kp |
