Tnsplyr, I have been following RSYS almost a year now. Thought the stock was overvalued relative to SBSE which is my core portfolio holding. Both stocks have been locked into trading ranges for sometime now. A week or so ago SBSE fell over $2 for no apparent reason, so I bought a trading position. On Friday the stock closed up $3 from my purchase price. I am happy!!
So what!! .... Both stocks and the entire embedded computer industry have great long term prospects. Both stocks are stuck in the mud. Patience will a great asset in owning either RSYS or SBSE. Pointing fingers at the MMs or getting upset at day to day price movements will only make you crazy, crazy, crazy. Buy the dips, trade the trading range, BUT KEEP THE LONG POSITION INTACT!!! If the stock really drops, add to the long position.
My outsider take on RSYS, for what it is worth. The stock got ahead of the fundamentals in early 1997. With $1.30 in the bank the stock was trading at $60 or 46 times earnings. Even in October the stock was $50 with expected 1997 earnings of $1.90 and a 26 PE ratio. Not a lofty PE, but not cheap either. Today, however, the PE on TTM earnings is running around 18x with a forward PE even lower. Now we are starting to get cheap. My guess is that the trading range is about to be broken on the upside. Unless the market tanks again, you should be smiling in a month or so. If I didn't own so much SBSE I would start buying RSYS at these levels.
Hang in there ... "Good things come to those who wait".
Good luck to all in the embedded computer industry.
Chris .... |
