For what it's worth, a retrospective low p/e analysis of CYMI and several peers suggests that CYMI is within a point or so of that level at which, historically, buyers of companies in this sector have bought all stock available. This is not to say that the company cannot go lower. No pricing model can guarantee that. But it is to say that if the 5 year growth rate and current forward estimates hold, there is very good reason to believe that there is money out there that will buy all shares available at about $16.00 p/s. I find the recent price performance, particularly Friday's performance, as consisent with this thesis. The stock is looking pretty tough down here. Hopefully it will stay here in a narrow range for a while. If it does, the fast money will exit and the stock slowly will find its way into the hands of those with an investment horizon of longer than a few days or weeks. When that happens, supply will constrict and demand will force the valuation to more normal levels.
Just my opinion, of course.
Good luck to all,
John |
