SPLS will be back up before the earning, 3/4/99;
they going to add two more stores in Geogia this fall.
If you are a day trade, you are screwed today. The
whole market is in red and it will rebound. GOOD buying
opportunity. Just bouhgt more this morning.
the range will be 27-35 before the
I'm holding for a long term!!!
Do not panic,
there is no sell off. The volume is nornal. If we see a
high volume, I might worry. The INSTITUTIONS are still
Good luck to all
I think it is time to start looking at adding
some more SPLS at this price point or below. Why?
Right now SPLS is sitting on the 50 day EMA. It has
rarely traded long below that.Around 26 is the lower
Bollinger Band. If one believes these type of things, or at
least weights them into their calculus of buy and sell
decisions, SPLS is attractive for a buy.
will be if SPLS bounces off of the 26-27
I thought enough of this to add some 25 June calls
Friday. We'll see, huh?
ok, if SPLS is trading at a price to earnings
multiple right now of 78.85, and we can all agree that is
historically very high, then If SPLS trades around a price to
earnings multiple of between 60-80 between now and the end
of their fiscal year. SPLS first call estimate are
for .66, if they have a 5% surprise we are looking at
an actual EPS of around .70 so the low end would be
42 and the high end would be 56.
In my experience
with SPLS, they have tried to keep the stock
relatively inexspensive, typically under the $30 range. This
last split came to late to moderate the stock price
under that strike for very long, if they want to keep
SPLS reasonable for the little guy investor, they will
have to do another split mid year.
If they have
decided to let the strike run a little higher, possibly
to the 40 range, they will still need to do a mid
year 3/2 split, since they will have to literally
trade sideways for most of the year(highly doubtful) to
stay under that strike.
That is the technical
reasoning behind my analysis. If SPLS cannot maintain some
mediocum of it's new higher P/E, then neither will DELL or
any other stock which is trading richly, and that
means major market meltdown. I am hoping/betting we
won't see a major metdown untill we also see some
problematic inflation and/or an interest rate hike.
Untill then, we are living happily in the land of
tulips<VBG> Who here owns an internet stock?
until earnings come out the fundamentals aren't
there. SPLS is already sporting a rather hefty PE (which
is deserved), but I don't want to see this thing get
too far out of whack. The condition is known as
over-bought. SPLS has made it thus far because it's earnings
growth could justify the PE. It has gotten further out
than it has ever been which is why it was set up for
the big fall on Friday. I'm not looking for slow and
steady, but fast and steady. The operative word is
steady. If I want to go on a wild ride, I'll go to Space
Mountain. I want SPLS to chew up the ground as it
progresses forward so there is no backtracking like we had
Friday. That means having the fundamentals in place.
Remember the fall correction when SPLS took much less of a
hit than others, in my opinion because it had not
reached a price which could be called over-bought. It WAS
getting into that territory this week and so it got
smacked. However, that's also why I don't think it'll fall
much below where it is, because this range is fully
supported. Put it this way: if SPLS had MSFT's PE ratio, it
would currrently be priced at $25.
BIG deal, come-on , 2 stores??? and that
justifies a p/e ratio of what,50,60 or the current 70+????
This price is heading down and SPLS can be had at a
lower price in the next few weeks--- and dont worry,
I'll "mark my [own] words"!!! see you at <$25 !!
I'm starting to wonder about you.
Since you've come to this message board, you've done
nothing but play down the stock. I'm wondering if you're
a rude person in general or if you're doing exactly
what you told everybody not to, trying to influence
stock prices. You're by far the most negative on the
board. Just my $.02