Mano;
Maybe that fundamental stuff will make a difference and stabilize the stock. However, I think that point of view is myopic. (Nothing personal). You know the reasons, as well as, I do. Why myopic? Because the whole history of this stock is just the opposite. You need to look at a long term chart, at least 12 years. The stock has always been unstable. Prone to steep rises and declines, the preponderance of evidence is overwhelmingly against it. I'm sure there have been investors in the past that hoped for the same thing, a merger, an aquisition, a spinoff might stabilize it. God knows, SEG has had many in its history. This is a company with plenty of money, and a dominant force in its industry. It has made lots of money and lost some too. However, on balance, it grew its capital, its size and its market share but the stock never stabilized. Yes, the industry is very competitive and there is overcapcity but there are many companies in competitive industries, like SEG, whose stock is not so volatile. The stock only seems stable when it is rising and that never lasts more than a year, at a time. The pattern has never changed. Maybe, we should look for reasons elsewhere? Huh? No matter, The stock is on the rise and it will make all of us plenty of money during the next 12-18 months. We have had too many confirmations of the overall trend to really doubt it. I am a bull and will remain a bull until I see confirmation of another trend. That could come with another 77 million charge against earnings.
PHOTOMAN |
