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CMED trade

CMED a Chinese Medical devicecorporation missed earnings in early March 2008, and caught many buyers long the stock.  The high multiple that had been placed on CMED stock was no longer valid because CMED had now disappointed the market missing earnings.  This created an opportunity to short sell CMED.  The trade worked and now CMED has entered into a period of stagnation.  Stocks can remain in stagnation for weeks, months, and even years.

 Earnings June 12, 2008 will likely give CMED direction.   The Motley Fool Community, and its publishers still have a very bullish view on CMED http://us.rd.yahoo.com/finance/external/mfool/SIG=12k0oq961/*http://www.fool.com/investing/high-growth/2008/04/24/5-more-top-growth-stocks.aspx?source=eptyholnk303100&logvisit=y&npu=y&published=2008-04-24.  I know in the last earnings costs associated with events in China caused the CMED some problems.  I imagine the recent earth quakes, and generally tempid environment of China could cause another short fall in earnings. 

      CMED  no longer deserves a large earnings to price multiple because the medical device market is showing earnings are fragile, and can be missed.    Seperate financial trading results from ideals and preferences.  I am watching CMED as a stock I have blogged about and looking to see how it may move in the future. 

June 9, 2008 - Posted by | Uncategorized | , , , , ,

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