<<Thanks for your thoughtful post on CD. I've been looking at CD for some time since Dessauer recommended it a couple of months back. I was thinking of jumping in this week, but you make a compelling argument for patience. >>
What would one be waiting for if one were being "patient" by not buying now?
With less risk will come a higher price, won't it?
Are you waiting for more bad news to potentially come out? What news might that be? That another .06 per share, again, will be deducted from earnings, but that the records are now clean? Don't you run the risk of bad news coming out on any stock, and isn't the potential for even greater falls there with higher PE stocks?
Wouldn't $ 15.00 still be a good price for a large company expected to earn about $ 1.00 by December 31, 1998?
What do you think CD is likely to go down to, if investors continue to be jumpy? As I said before, for me it is about $ 2.00 ($ 13.00b).
If good news comes out (clean, final audit), what price do you think you will be able to buy CD for? Do you think it will gap up to about $17.00? So it looks like you will pay $ 2.00 more, for waiting, or be penalized $ 2.00 by buying too early. The odds for me are about the same, so I might as well buy now and sell if I don't like how it behaves. So far, so good.
My vote was/is to buy now and sit out an up to $ 2.00 drop on my position.
Of course, one should always consult his/her financial advisor before making any decisons. I am not a financial advisor, of course.
CD: $ 15.56a
VALUESPEC
valuespec.com
CD: $ 15.56a
VALUESPEC |
