"20% growth and a 24 p/e don't do anything for me..."
Could you explain? This seems like an approximately market P/E with above average growth rate, excellent technology and all as a bonus.
BTW, if we take 0.45 - 0.50 earnings per quarter times 4, we get about 1.90 in earnings; with a stock price of 40, this gives a P/E of 21, rather than 24. Oversimple analysis? Yes, because it doesn't factor in growth, where we might be 18-36 months out, etc.
What I haven't heard anyone mention is end-of-the-month selling. May hasn't been a good month for this stock, so people blowing it out here could account for the recent weakness. I think this is happening with a lot of tech stocks.
My bias: I bought at 41+ back at the end of Jan, sold too soon (at 53) on the way up to over 60, and got back in a week ago when we dropped below 41. Too soon, but so what? This week's action a 2 or 3 points lower doesn't bother me since my effective basis is about 28. Gotta be careful reading too much into a day or two's action because this is a notoriously volatile stock. But it seems more like a hold or buy situation at these prices.
Will be interesting to see if we can get some gas in the tank next week with any first-of-the-month buying.
ChrisMeister |
