I am almost thinking that I might want to buy a little more...probably need to follow the 3 day rule though and make sure we aren't going to dip more.
For those who like this stock and want to hold (and I am one) consider selling calls on your CMC....its easy money :)
i think this is a great buy opportunity..these guys did a buy back of 2 million at 26.06..have on the table to buy back another 2 million..would not be surprised if they were active today..believe the bottom is close to being in..
You did not read his message. He talked about a 33 % decline. From what? It more than doubled over the past year.
If it pleases you, yes, I was in before it ran up and split, and yes, I did take profits along the way. Still own some and have no intent to sell at this time.
3 days rule in this particular case means holding the bag while there is stil some stuff in it. In three days it'll be empty though and some people will be still holding it.
In April the CMC was part of IBD100 and had a Zacks #1 rank. It still did not prevent it from sinking more than 33%. Subsequently the fundamentals of a sinking ship (Titanic) are irrelevant if the market (the iceberg) decided otherwise. Now it's no longer part of IBD100 and was down ranked to #3 (hold) by Zacks.
With the projected income for the fourth quarter CMC stands to make abt $4.40/share. On that basis the P/E is less than 6.
I think they get lumped in with the Nucors of the industry. However, CMC is much more diversified than Nucor and the likes.
Buyback of shares is one way to boost stock value, another way is increasing dividends.
Either way, the stock should be trading in the low to mid 40s and that would still be a rather measly 10 times earnings.
Just wonder what makes people sell given the fundamentals.
Easy come ez go wrote: ""Either way, the stock should be trading in the low to mid 40s and that would still be a rather measly 10 times earnings.
Just wonder what makes people sell given the fundamentals.""
LOL! What fundamentals?
CMC's weakness is the same thing that also makes it attractive. It's margins are very low (almost half) compared to the major players and to the industry as a whole. But this also means it's got a lot more room for improvement than the other companies. This time around - no margin improvement. Dead on with last quarter and with a year ago.