It is trading on a PE of 22 based on FY2000/2001 earnings. They have said that earnings will be down in the year just past so its PE could be in the thirties even at the current price around $2. It is overpriced at that ratio considering it isn't growing at anything like the rate needed to justify a PE over 20. So, in my view it is a sell on fundamentals.
On TA.
This one is obvious. It;s has been in and still is in a downtrend since December 2000.
I see no reason to buy it at the moment except to trade small rises over a period of days which is a brave move in the current market. If you are into holding for months or years it would seem a very bad investment at the moment.
The only reason I could see for it not falling much further is that the "market darling" factor hasn't yet fully evaporated. Also, many of the big brokers still have it as a BUY which will support the price.
