Yep, technically CPU is in pretty bad shape. On the other hand, if you look at just about any stock related to tech it has a similar pattern.
I wouldn't suggest buying a large position at these levels. As you say, it could go lower. But I am the worlds worst timer, so I like to nibble and accumulate.
A few years ago it went to 7. So this could happen again. But a year after it went to 7, it was at about 80, so who knows.
One thing to watch closely is sales. One of the indicators when it was at 7 that it was going to recover is that sales continued to climb, although they were losing money. If sales go up, usually a way can be found to make it pay. So in the next quarter compare its revenue to the previous quarter and the quarter year ago. If they are falling off, we could have a longer wait, or perhaps they would be in trouble. But I have been in the stores, and the one here in Orlando does real good business for its size. Not just people wandering around, but actually buying stuff. So we shall see. Be ready for a bumpy ride. |
