Steve,
<<Richard is dead right that stocks can be at the wrong price due to fear and greed. In the same way that is is possible for Ciena to get adjusted from 80 to 34, I believe MRVC will get adjusted to 30+>>
CIEN is a great example on 2 fronts. First, how short the time frame was to establish a short position. Second, a stock with a great reputation, analyst upgrades, earnings estimates up, revenue estimates up, but a secret that management HAD to know about. That was of course one of their largest customers about to walk away from them. If you have charting software, look at the price and volume starting at 7-21-98. For the next 11 straight trading sessions you'll notice a daily decrease on heavier than normal volume. Worst of all, no bad news from the company to account for it, then - well the rest is history. Once again, price foretold the news.
This short position in MRVC is really embarrassing me, I'll try my best to start wising up. Best of luck.
Cube |
