Jess, brighten up - the worst part is hopefully behind. The market is not ignoring CYMI potential, but first it had to adjust CYMI price to the increased float. Right now, this process seems close to completion - CYMI stock price has finally reached the level that fully reflects the effects of massive shorting against debentures.
From here, CYMI will trade in line with the SEMI EQUIPMENT sector, and more likely than not it will rebound.
You may look at my earlier post and Curly's response for some details. Also, take a look at the APM chart in the beginning of
the year. That stock went up into 60s and traded way ahead of the historic sector PEs. Then APM makes a RDRT takeover bid, Mr. Vinik decides to sell his position, stock starts falling, debenture holders go short. That stock went down much faster than CYMI, but it did recover nicely in a relatively short time. CYMI should perform much better than APM, because of its strategic position in the litho industry.
(P.S. Now APM stock is depressed again, but for a different reason).
Regards, Y. |
