It is probably just in Datek's belief that the first quarter earnings will still be disappointing (a very small loss) and they may have been originally expecting a small profit or break-even. This is really of no great consequence (imo) as we long term followers and investors do not really expect solid black figures until the second quarter of 1998, although we may have a break-even or slight profit at the end of the first quarter 1998. Nobody knows the exact answer, other than quite obviously from the announcements, sales are rising steadily, and the outlook is ever more promising.
Believe CYI may "drift" around present prices until either (1) CYI announces further major sales, in which case it may begin moving up once again; or, (2) the street is disappointed in the earnings (when released later this month), if so the stock may drop somewhat. Then what would happen if you get a combination of the two? Perhaps stay in current 2-3/8 to 2-5/8 area?
So what to do? It would seem to be that if you are one with a long term outlook, have patience, and stay the course, you will be rewarded with a good profit. Thus, imo, would rate it an "accumulate" at current prices. The bigger problem, may well be when to sell. Many of us, including me, probably have a tendency to worry and take profits too soon (although you'll never go broke taking a profit, you may miss the bigger payoff). Perhaps it may be best to take more of a "Buffet Approach" and hold as long as the sales and earnings continue to grow very well on a steady basis, which may mean 3 - 5 - 7 years. But nobody can exactly forsee the future, and you have to play it your way, as you see it at the time, and MAY THE FORCE BE WITH YOU!
I know this is more than you asked for, but just had to get on my soapbox and spout off a little. Please excuse the extra "garbage." |
