<<I really think that Cymer investors are a bit shell shocked from last summer and fall. We just can't accept it going up. >>
Not me, Bruce. I can accept any fact Cymi is going up, given the outstanding outlook this baby presents.
People don't buy stocks only because they look good next quarter, they also buy stocks that look good in two to three years or even longer. One of my major holdings (CKFR) is like that. I started accumulating CKFR when it was in the teens and didn't know when they will make the first penny (they were losing $2~$3 per share at that time). But because CKFR's long term future looks good, people have been buying up to $31 recently, even though they still haven't made the first penny yet.
Although PE is a very useful tool, but one can't simply use PE as the only measure to weigh the value of a stock. A capital model is a much better tool than a PE. In Cymi's case, a conservative capital model might show it is under valued although its PE is sky high if this company can maintain that 90% market share and the competitive edge it is holding right now. And there is no sign of any market share loss, which will be the main driving force for this stock in the near future.
I believe Cymi's long term outlook can attract a lot of investors. But it can not happen overnight, though.
In any case, personally I am more than happy with the price performance for the last one 6 trading days or so. |
