Candlestick, don't you think that ASND is just as good an analogue? Stop talking about CYMI all the time; people here think that CYMI was something special. It wasn't that special. The same darn thing happened to ASND, BAY, WDC, QNTM, etc. Tech stocks, when they disappoint, take on a negative momentum. The PE contracts due to lower growth and poor visibility. The E is smaller so the price contracts for that. Tech stocks usually start out hyped, so they get downgraded in waves (first on the announcement, and then the laggards pile on). Then short sellers come for a momentum play. The stock must base at a price low enough to attract value investors, and show a turnaround, and then it goes up. It is not just CYMI. All you people who think Candle is pinning too much on CYMI need to think about this general phenomenon, and how a market structure based on earnings forecast, whisper numbers, a premium on growth and analysts with market power and short selling MUST lead to this phenomenon.
Good luck if you're long, you're gonna wait a long time, and meanwhile opportunity costs mount. At the very least, sell your shares and buy calls to free up cash and limit losses.
Matt |
