Me, too (I'm baffled). I can only think "the market" is an extremely complex mixture of facts, lies, rumors, and emotions (both fear and greed, of individual and group). Furthermore, it has been shown to behave as a random walk (by at least one author) and others suggest it is fractal in nature (or obeys the stars, or moves in waves, or obeys arcane "technical" rules ...). Certainly money flow has an effect. Nonetheless, I can't help thinking that good fundamentals improve how an issue will behave over the long term, so good fundamental analysis should improve one's chances of (coarsely) divining the future.
More to the point for this thread, I think projections for Sun's earnings this year are around $2.30/share, and I believe the S&P has a P/E of approximately 23; consequently, and because I think Sun's prospects are at least as good as the economy's, anything below 53 looks like a bargain to me. I'm amazed that I was able to (and did) buy SUNW at 43 last week, and could have done so for not much more today. Tomorrow perhaps the temptation will prove irresistible.
JMHO. |
