No single clue, Tom, but rather a continuation and strengthening of CRNR's recovery that began two quarters ago.
I am seeing the same pattern with CRNR as with some of my other tech stocks. A stock will stay in a predictable range for a long time, often a year or more. The range may be very wide, such as CRNR's 6 to 10. Traders begin to get complacent, automatically selling at the top and buying at the bottom. It makes them money.
At some point, however, the fundamentals change. Earnings improve, new products start to hit the "sweet spot", and the news is better. BUT, the traders continue to sell at the top of the range. Very shortly thereafter, (usually one cycle later), the stock breaks the upper end of the range and the traders throw in the towel. When that happens, the returns can be tremendous.
And if you buy near the bottom of the last cycle, which I believe we are now approaching, you can easily double your money in a very short time. In any case, I think the downside risk in the 7s is very low. From 7 1/2 to 10 is a 33% return, and to 15 is a 100% return. I think both are achievable within 3 to 6 months.
We're going to get a real "gift horse" buying opportunity here in the next week or two. I'll be selling other stocks to buy this one. |
