Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : CHMD low risk below 15: Potential 50 -- Ignore unavailable to you. Want to Upgrade?

To: Thomas G. Magnani who wrote (196)	2/22/1998 1:24:00 PM
From: Dan Turner	Read Replies (1) \| Respond to of 241

I can only speculate on the sluggish stock performance. My primary best guess for the last week + is that CHMD stock is caught in an out-of-favor sector, what with the revelation of some shady doings at some other companies. As far as explaining why it's taking so long for the market to realize the value here: Well, (1) CHMD went through some growing pains and ticked some analysts off with the Quickcheck strip problems about a year ago and I don't think the analysts have yet forgiven them; (2) CHMD has taken a different (and IMHO better) approach to providing the market with earnings guidance -- specifically, they have become much more conservative. I don't think they will again suggest numbers they don't believe they will easily make. Thus, I expect continued upside surprises when the numbers are announced. This is just terrific, as far as I am concerned. It means I can continue to accumulate the stock at these gift prices -- almost no downside risk and sooner or later the market will have to notice how incredibly undervalued the stock is. I'm happy to wait--since I see it as such a sure thing. FWIW, I understand that the institutional ownership in CHMD has dropped tremendously so that it is now VERY low. Another reason supporting my opinion of the extremely limited downside risk and huge upside potential. Rgds. -DT