<<Why should an investor put his money in CPQ?>> With the fundamentals, and more importantly, the potential of this company being so well known, I think the most pertinent question is
not "why", but when? I spoke with an investment manager at
Cowen & Co. today who believes that the time to look at CPQ as an investment (medium to long term) will be in about 6 months. He believes that by the end of the year, and into next year it "will fly". Take that for what its worth.
Very short term, CPQ's relative strength reading is lower than it has ever been in the past three years (I didn't look back any further).
I have found a reading at this level (for other stocks) to be extremely reliable in placing a bottom. This doesn't mean it will jump up any time soon, just that it is likely to at least base here and the downside should be very limited. In addition, CPQ has support at 23, and again at 20.
Having said this, I truly hope I won't be proven incorrect. This has worked very well for me in the past. My opinion, FWIW,(I own this thing ~31 so WDIK)is that any opportunity to buy between 20 and 23 will be duly rewarded within six months -- by years end at worst.
If CPQ finishes the year ~40 to 45, as at least one analyst expects, that's not a bad return.
Of course, for everyone who already owns CPQ in the thirties or forties (probably everyone who is reading this)if you don't average down, you've got dead money for that same period of time. It's tough to buy more when you feel the company has just screwed you, but either you believe in the company overall, its vision, and its ability to execute, or you don't.
Best of luck and good fortune to all.
Whys1 |
