>USRX and INTEL--certainly the fundamentals haven't changed.>
Intel: IMO, the stock is undervalued. And with the split (which I make an educated guess in saying that it will be in early July), Wall Street will have the excuse it needs to run-up the stock to $200+.
US Robotics: Unlike Intel, there are still many questions surrounding USRX--which has been reflected in the stock's weakness.
>Is your short-term bearishness due mostly to instinct, or does the price movement of CSCO and others play a more important role?>
That's something many people don't understand....when I turned bearish on CSCO and the networkers, it rationalized it because Intel was weak---my buddies on the CSCO thread didn't understand, and flamed me for it. The fact is, INTC and MSFT (and to a large extent, CSCO) are the technology market. If they are weak, then there isn't much chance of other techs being strong.
>I have never understood either why MOT should be trading at a higher multiple than INTC. Ask your efficient market theory prof about that!>
It's sort of complicated....
But think of it this way: Many stocks, tend to have the LOWEST P/E ratios when times are good, and the stock price is up. They tend to have the HIGHEST P/Es when times are bad (for earnings) and the stock price is down. |
