Warren I have said much about it recently, go back a few days and read
the discussion on this thread, new thread is fine, I am not sure how to start one? but the point is, the trade is risky, there are varied opinions on the company, and much depends on the EPS results and other communication from the company in Jan.
On the face of it 4.5 maybe if the anlayst is totally right, but odds are he may be right but in a different time line, or he may be wrong alltogether. EPS forcasts are not always reliable, their accuracy improves if you relax the time expectations and discount spin.
Again if it doesn't bust, and turns around I think its feasable to see this gain in 97-98, for one thing, once they turn profitable they can take advantage of tax write offs against 97 earnings which can really give it an extra pop. See, in the past they never could make use of these credits for lack of earnings, incidentally the momemtum was up today for the first time in several bars and I noticed some buying going on.
Good luck
Luis |
