Stitch
I couldn't agree with you. Look at TLSP, the company lost $6.36 for FY1997, and earning for FY 1998 was estimated around -$0.34. TLSP has a book value of only $2.00, but its recent price is within 9~11/share.
When TLSP was traded around $2's earlier this year, every one on that thread was very pessimistic, and the company didn't make any comment during the period of endless price dropping, much like the situation we have here. Now TLSP was soared from $2's to $10's in the last month without any reason, except for the strong buying recommendation from some brokerages. Who can ensure that APM will not have such chance later ? There are many similar examples I have seen. I strongly feel that some brokerages or institutions had intended to press the price down as much as they could, to force the weak-hand out of the stock so that they could load up at cheaper price. Only when the institutions think their accumulations have been enough do they give the stock the strong buy recommendation.
By the way, in addition to APM, could you find any other stock in current market, with its price lower than or equivalent to its book value, no matter how much earning the company made or lost in current FY?
Kenwood |
