>>Since you are one of the most knowledgeable people on this thread, can you give 3 reasons why COMS's stock price can make a reversal during the intermediate term? It seems to me that COMS is out of Wall Street flavor at this point. It might do well when the streets are done w/ sell or buy on other stocks. Please comment!<<
Tom, IMO, we're in a very difficult situation if we're in
for a short term trade. It's true that COMS is out of favor
with the street...but what's much worse is that the market
is just breaking down, plain and simple (imo). When the market
breaks down, it will lower the boom first on what they consider
the riskiest stock. Except for the big-caps (and they are now having big problems of their own), most other stocks are considered to be in a bear phase. I don't think this dropping is all COMS specific.
Sure, COMS is a 'scorned company' by the market, but right now,
problems are a lot market related.
What's a real "tell" for me, is look at friday's trading. There
was massive buy pressure at 28 1/2 when the shorts were piling
on it big time. Shorts saw a good opportunity this morning
because of their read on the rest of the world markets. There
was no support at 24 1/2 what so ever. Shorts will keep
driving the price down until they see bargain hunters
step in and buy.
Problem, is, if you were a bargain hunter and thought that
COMS had a good future, wouldn't you wait till the market
beat up COMS as much as possible and get a good price.
If you're in cash, wait for a "great deal" on COMS. IMO,
the fundamentals are much improved and COMS has a
GREAT future. You'll just have to wait till it
fine tunes it's machine for another few quarters. Networking
and telecom business is a great sector for the next 10 years.
If you already own COMS, it's crazy to sell. You'd be
taking a big loss and the only reason anybody should do
so, is if they believe this company has no future.
Or, if you sell know, and feel confident that you can rebuy
at a lower price (something that's crossed my mind)
Heck, none of the COMS officers/insiders are selling. They
all think the stock is worth much more. They also think
the future is good. Otherwise, they'd be selling.
Maybe we'll get a boune soon, maybe not as soon. It's hard
to say now, because we don't know how much of all this
negativity is the market also. I think the market is
getting discouraged from future earnings. Personally, I thought
a correction would come in Sept-Oct, but it looks as if
it's creeping in sooner.
So,
>> can you give 3 reasons why COMS's stock price can make a reversal during the intermediate term?<<
No, I can't. Not short term wise.
>>It might do well when the streets are done w/ sell or buy on other stocks.<<
I agree with this. And especially if COMS doesn't preannounce
next quarter. I don't think they will.
The question is, "when will the street be done correcting, selling"?
That's the real question on everybody's mind.
My take is that there is no support for COMS at the moment,
because the market is in a big period of re-valuation. The
market doesn't like the earnings (in general) this earnings period, and mostly it's interpreting a poor 2nd 1/2 of '98
It also doesn't help that it's August is a slow month for
the stock market.
IMO, that's what's going on with COMS. We just have to
bear it out and try to figure out where the bottom is...right
now we have no clue, even though COMS is unbelievably oversold
at the moment. |
