Thomas,
Thanks for your reply. To answer your questions:
1) To my knowledge, Van Wagoner has no relationship with Morgan Stanley or Montgomery, but this is a question that would be best put to the firm itself.
2) What was Van Wagoner's average entry price in Cymer? Again, this would be another question that only the Van Wagoner Funds could answer. I think that you would be correct in assuming that his move to sell out of the position at the first hint of the company's problems was an attempt to lock in profits and protect the best interests of his shareholders.
3) You're right. By waiting for Cymer's earnings report before committing to the stock again, Van Wagoner is showing good judgment and prudent risk-taking.
4) Cymer's no-disclosure agreement is certainly a factor in the continuing cloud of uncertainties surround this stock. But, we should remember that it's not only the facts that matter - it's what investors think about those facts that count. The current consensus of investor opinion, that's being reflected in Cymer's stock price action, seems to be that any push-out of orders from Canon and Nikon will have a material effect on the company's near-term growth.
5) I've been following Cymer for some time now. It's only been in the few days, with the dramatic drop in its stock price, that I've initiated a position for clients. While Garrett judged the risk of being in the stock to be too great at $36 per share, I've taken the view that the risk is greater being out of the stock at $26. Clearly, he has been proven right in his assessment. I may yet be proven wrong in mine.
Best regards, |
