1) Cabot's weak. This 20% rule-of-thumb isn't a bad one but certainly says nothing about Cymer's future value. I have had my ass saved by 20% stop-loss orders in stocks with unpredictable variables (Cityscape! Sold it at 8 3/8 at a 20% loss, thank heaven, it hit 1 1/2 two weeks later.). But there is no analysis of the company's operations, really. Therefore, Cabot sales will no doubt impact the short-term negatively, but these sales have nothing of interest to me.
In general, I'm neutral to negative on analyst recommendations. I try to buy on fundamentals and prefer stocks with little or no coverage. Then, when coverage starts, you get a nice jump for no reason and can sell at a good profit. But for a well-covered stock, I need to listen closely to the foundation of analysts' opinions. They sometimes have more information, background, or understanding of the issues involved. I always assume they might know or see something I don't. But not Cabot.
2) What does worry me is Komatsu. |
