Robert, that was exactly my argument for "ratcheting" down valuation on CYMI. It was "overpriced" relative to its "peers" and the combination of the cutbacks (admiting "below plan future sales") with the current spate of law suits (I suggested when the first came that 10 more will follow, well they are), is bringing this stock even lower than what I, as recently as last week, thought it would go. I did not expect this 8'ish price for another six weeks or so. Frankly, I do not have a lower target than 8', which will be twice book and 13 times what were expected earnings for next year. Now, we have to see if these earnings are going to be ratcheted down or not. I would say that waiting on the side lines, and seeing where the new trading range , if any, is established. I would not yet "average down". It might be better off to do that once a new upward move is established. Just my 2 cents.
Zeev |
