Sankar, you're not the only one that missed out on buying at 26 yesterday. But there's no way to predict when some guest on CNBC will start touting a stock. I have seen people here at SI who jump into a stock just for the "CNBC effect" for "a point to a point and a half". Plus the story gets more exaggerated every time. I didn't see the CNBC GS/QNTM episode today, but the story changed a little with every post on this thread, regarding what the GS analyst said.
First it was "DLT alone is worth $50, true value of the stock is north of $80". The latest person posted that GS said their target price is $80. I'm not arguing with the figures, but there's a difference between the two statements. Lehman Bros. has been the single biggest bull on this stock for most of this year, stating in each report "Quantum remains our single best investment idea", or words to that effect. And yet, last I checked, Lehman's 12 month target was still $43. Is Goldman Sach's official 12 month target price on QNTM $80? I wonder. But I doubt those who bought for the CNBC effect will be waiting to find out if QNTM goes to $80.
I'm going to wait a few days and see how the stock price shakes out. I still believe there is big immediate overhead resistance above $31, from that huge volume sell-off from $35 down to $30. In fact, the overhead supply extends all the way up to $43.
In any case, the stock isn't going to be above $40 until next year, IMO, due to uncertainty surrounding drive pricing pressures (ie, how bad will it get).
DK |
