Hi Charles,
I think there are several reasons why this stock is not trading with a P/E of 20:1, but I'm stumped as to why MLOG is trading this low. Rather than have me type it all up again, just go back to August and read some of my posts between then and late Dec. Thanks.
There is no specific news driving this stock down. On the contrary, they will most likely announce earnings in Feb in line with analysts expectations. If you own, hang in there, if you don't, you should consider buying at these prices. I can't promise that their Feb repoprt will bring up the stock price, but eventually, stock price will refect value. Can you wait 6 - 9 months to earn 50% ?
What you're seeing is a bear market affect. Which means that there is no buying interest no matter how good the fundamentals may look. MLOG is thinly traded so when someone wants to dump this stock, like they did near the end of the day on Friday, the MMs bring it down quickly.
Keep in mind that only 15,700 shares traded on Friday.
Hope that helps,
Chris |
