Comments on: ROCM Chart – Catching a Falling Knife?

By: Walt Calahan

Walt Calahan — Fri, 20 Jul 2007 16:34:44 +0000

A wounded security take a lot of time to recover and ROCM is no different. It seeme to have found support in the $14/shr area with a report on 7/26 which could help. That said, anything can happen, up or down.

By: Fred

Fred — Tue, 08 May 2007 03:14:21 +0000

And there you go…Vector Vest updates info for ROCM tonight with the new earnings data incorporated into the mxi; their fair value went from $42.00 to $9.62 and their PE ratio for the company went from roughly 6.5 to 52.81. Like I said a few days ago, many were sucked into this stock believing they were putting one over on the big ole dumb market by buying a super fast grower at a super deep discount. It just wasn’t so.

By: Walt Calahan

Walt Calahan — Sat, 05 May 2007 23:32:18 +0000

The markets are usually right even when a correction happens that no one understands. Of course there have been mistakes made by an investor, but they usually quickly corrected. ROCM has had a sustain drop with a modest retrace after what seemed to be a broad acceptance by everyone. Has the PPS bottomed and is now on its way back up? My intuition say to waite before buying back in. JMHO

By: Fred

Fred — Sat, 05 May 2007 17:13:00 +0000

ROCM will now trade amongst those that feel they truly know the ROCM story. Those that feel they have an edge in determining it’s real valuation. Those that feel it’s undervalued even factoring out lawsuits and those that feel it’s still brutally overvalued on many different measuring sticks, including future market potential. The flushing of anything momentum related has been complete; ROCM has been dismissed from IBD and VectorVest, which had it rated as their top stock going into last week and continually in their top 10 for a few months, now has ROCM rated as a sell. This will be fun.

By: Fred

Fred — Thu, 03 May 2007 14:23:17 +0000

I believe many new buyers were led into this stock over the last few months under the misperception that it was trading at 6-8 x earnings(reality is 50-100 x earnings). Every data source was counting their massive one time settlement into the most recent quarterly earnings and extrapolating it as if it were going to happen every quarter. I think people are just smelling the coffee and waking up to the fact that the company is very richly valued even at $18.00.

By: Bullish Jim

Bullish Jim — Thu, 03 May 2007 12:05:03 +0000

It was a typical overbought, overextended IBD 100 stock. When they fall they really fall. It’s as if a huge number of shareholders suddenly realize simultaneously that they have their nest eggs tied up in a company that has $8M in quarterly revenue. Look at SYX and IAAC (one year chart) for similar stock charts of IBD 100 stocks gone bad. Once they have their freefall, they’re usually toast as a momentum play. I make this point based on very painful personal experience…