I view P/E 40 as a target at this point, for a variety of reasons. 32.50 is slightly above, just to be safe. Of course, if stock gets stuck at 34 and trades around that for weeks, I may cover and leave for greener pastures. But it is more likely to tumble one day not far away.
Why, I am sticking to my original plan. Started to short at 36, shorted at 37 and 38.
Almost even now. I can short all the way to 45, if necessary. Crash back is just an issue of time, and we will not have to wait very long.
Cheap?! Then what was it at $22 less than a month ago? Then was the time to buy, not now.
PEG is a good measure for larger companies. If you apply it to a fast growing company which just started to break even, you will get PEG zero, since growth rate from zero income is infinite. CUTR suffers from a similar distortion. A better measure for company like cutr is revenue growth rate, and here elos is better.
Elos profit growth has been affected by
1. secondary offering and dilution - done for now
2. charge to settle some patent claims - ahead for cutr.
From now on, elos will beat cutr on profit growth as well. It already started with a fantstic last quarter.
>>What is important is how much company earns, per how much it costs, and how fast it is likely to grow.
This is best measured by the PEG ratio. CUTR has a PEG of 80, ELOS has a PEG of 1.03. So CUTR's price can increase 25%+ and be valued evenly with ELOS based on their current prices vs their growth rates.
>>elos and cutr P/E should converge,
Oh, please! In every sector there are leaders that outperform their peers that also, whine, should be valued, whine, as much as the leader. Take GOOG and YHOO. Why is GOOG's PE more than twice that of YHOO? And likely to stay that way? All your hoping, wishing, reasoning, is more likely to drive you to the poor house than to change that.