Tideglider, I actually think that some analysts like the projected earning reduction (at least right now, but ask them if they'll respect you in the morning <VBG>), the reasoning being that the investments in service infrastructure and additional R&D, raise the barriers to entry for the competition, and as the company said (paraphrasing) "putting more distance between them and the rest of the field".
As for the stock itself, the breakout through the 17.75/18 range indicates that some market participants agree with those analysts.
By the way, for those always wondering why would I comment on the stock if I do not own it, I got in this week despite myself (just above the break above 17.75), but, now I am shaking like an "automn leaf". What I fear is that the current price may not hold an onslaught of bad news from Asia, which I am not sure is over yet. My own personal signal to get out would be if it does not hold 20. I am not ready for a long term position here, as yet. I am afraid that analysts might awake up to the fact that a current 50 or so PE may be too high for a company that may resume its 50% or so growth rate in another 12 months or so.
Zeev |
