J.S.:Technology issues are not for the faint at heart.
The stomach lining should be thick if one chooses to play this volatile game. The rewards are fantastic if the right choices are made, yet constipation can result if errors are made. Probably because of this Volatility, and unpredictability one should have longer term outlooks. Personally I like to dip in then dip out. Sometimes I win, sometimes I loose, but the challenge of the game keeps me intrigued.
I would say that AOL has become a bellwether along with Dell. Bellwether's at times make no sense. For example about a year ago $20.000 invested in Dell, if held to today would of returned a value of $950,000.00 It doesn't make sense to me, but there ya go those silly bellwether's. So then I stay intrigued, and wonder!
PEG, or (price earnings growth) is at around .50 with cube, which is a relationship between the current PE and expected growth in the upcoming years. A fully valued stock would have a PEG number of 1.0. So then Cube's fair value should be about $40 dollars a share. Your thoughts of this issue being undervalued are then correct. How then does this stock reach full value? Simply stated to continue to produce numbers at earnings season. The streets not stupid, when they see that this company is for real, it will be at that time the stock touts a real price value!
Good luck c-ya! |