Richie: The complications arising from the merged accounts of CPQ and DEC together with so many open-ended questions about AV, has clouded the picture. The analysts, as a body, have not yet spoken. Perhaps they are confused, too, and need tomorrow's meeting.
In this climate it is difficult to predict the very short-term movements of the stock. If there was not to be a meeting tomorrow I would say the stock price would erode to $45 and possibly spike down to $42 before bouncing. (On a really bad market day, it might go to $40 momentarily).
However, the meeting tomorrow might produce upgrades or clarifications which would give it a boost.
I think a pull-back or correction is inevitable now either from today's levels or from whatever level might be reached after the analyst's meetings. The main reason for this is that the stock is considered by the market to be fully valued at $47-49, and there will be many who bought in the 20's and 30's seeking to lock in profits and find a faster vehicle elsewhere.
This should only bother traders. Entrenched long holders should see it moving up in fits and starts to $60, perhaps before next earnings.
Frankly, I am uncertain, but my rheumatic twinge is telling me to be cautious. |
