Joe,
I think you're much more versed in these matters than you are aware of. If you are right ... well, I think you are right.
I've got to be honest .... I think WACC is a crooked company (or, at least, they have very crooked management). Had I felt this way 1 week ago, I would not have bought in. However, having made that step, I'll be happy to see my investment grow to a point where I can make a small profit. Moreover, I do hold the opinion that the current intentions (getting relinsted) of WACC are legitamate. So often, general incompetence is mistaken for conspiracy.
We live in a world where if a stock goes up sharply, some folks make a lot of money. And if a stock goes down sharply, some folks make a lot of money. There is always a motive behind a steep gain or decline.
I like WACC surely not on their fundamentals. Even if the fundamentals were fully published, the real question is: Could you believe them?
I do not want to discourage anyone from believing this stock isn't a great investment. I bought DELL in late 1993 after DELL had fooled around with the derivatives market and lost serious $$ for shareholders (ehich I didn't know about at the time). I sold in early 1995 (about 13 months later) when my money doubled (which, according to conventional wisdom, wasn't supposed to happen). I felt the company was a fraud and/or Michael Dell (who was 29 at the time) didn't know what the hell he was doing. If I had held on and kept my original $500 investment, it would today be worth $18,000. I bought at $22 in 1993. Split adjusted, that's $3 per hare today.
So, I keep excellent hopes for WACC. I think it may turn out to be a great investment.
Cheers!
Ed. |
