Is it significant that it dropped below the 200 DMA? Perhaps a better price below $10 is worth waiting for. Pick your entry points wisely.Of course we may miss some this way.
ak4cea,You can view a stock dropping through its 200-day moving average as a "noodle point:" a time to reflect upon what the problem is with the company. Because there obviously is a problem, it's up to us investors to figure out exactly what it is and whether we can live with it.Tenet Healthcare (THC), for example, currently trades at about $10.80. It crossed its 200-dma back in September, 2002, when it was trading at a far healthier $45 a share. When it crossed the line, an investor might have realized there were bigger troubles ahead and gotten out.It is a significantly bearish signal, but one that shouldn't be considered a hard-and-fast "must sell now!" rule. It's a time to re-examine the fundamentals and decide whether there are "problems" you can live with. You may also decide that it is a good time to get out while you decide what is going on. I'll also note that the 200-dma is the only TA signal that the Fool will even nod its jester cap at. Again, not a must-sell point, but rather one to cause you to dig deeper.Rich
I'm not really surprised that CNXS has been shaken. The revised earnings downward and ~8% growth in sales expected for f2003 is not too pretty. It's about the performance I'd want from a stock trading with a PE of 10-12. Not the current 17X. If CNXS gets into the $7-9 range, I'll give it a serious look. Even then, it's hard for me to consider putting money into a company that doesn't seem to be able to really manage it's growth successfully (This isn't a conviction - I haven't done enough research yet - it's just an impression).At the same time, I see a potential buying points for FARO, SCNYB, TALK, and ESPD, CSTR, and RADN opening up. Every one of these seems more interesting to me than CNXS.
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