Ken: 6 months ago talk about Nextel at 23 would cause longs to say we're nuts.
Now, lets look at the situation. Nextel recently was put into the S&P 500, soon after it hit an all time high, the longs were saying "goodbye to whom ever was left at the station, Nextel is taking off for outer space."
Here we are, now, freely talking about buying more at 22 or 23, like it's acceptable for this company's stock to fall from 35 to 25 for no reason. Something smells, lets find it. How about this story, as an example.
I have a client that works for PA (Pimco Administrators). He told me that the Co. would meet analyst's estimates for years to come. I bought the stock. Guess what, about three days before the quarter results were to be announced the stock drifted down. I knew better, so I held. Guess what, the quarter came up short. My nose started to twitch before, and as the smell grew, I ignored it. I suspected something was wrong as the stock usually climbs before the results are announced. MORAL TO THE STORY, MY NOSE TWITCHED TODAY. Especially after I bought in and it dropped another point.
Is something up that we don't know about?
Al G., smelling his way to the answer. |
