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Evidently you didn't look at the year 1992 or maybe 93, somewhere around there, when CPQ went from the 70's down to 22. CPQ is fully priced, and will be sensitive to any negative news on it or the economy. Gas prices are going up. That's going to fuel inflation and interest rate fears, which could adversely affect all stocks. That's just one example. The dollar is gaining strength. That's going to hurt CPQ's international sales. And if you look at CPQ's prices during past winters, CPQ, like the other computer stocks almost never appreciate during these months, and, not infrequently, they decline. All the good news is out. There is nothing left to keep the stock up, and there is quite a few things that could cause it to go the other way. I already gave two examples. My own policy is that if a stock isn't going up, sell to earn interest on cash, and buy back in on weakness, which will surely be coming. Remember, too, that Pentium Pro shortages are going to hurt sales this quarter. For the adverse affects that stock fund selling will have to finance year-end payouts, read my thread on Dell computer. |
