This thing has really confused me of late. And about 1 hour ago I heard something else that has thrown me a little. It goes like this... The recent form in LOOK/ LOK has been driven out of the US in anticipation of a good profit report to come by the end of the month. Much of the buying has come about because of two "healthy" buy recommendations put out by some respected analysts. The cynic that I heard the story from describes these actions as a classic "pump-and-dump" situation. The buying has alreadt thinned out in the US, and it looks as though trailing momentum is pushing this price further. I am told that we should see some profit-taking well before the release of earnings news, then a big dump the day before/ after as the "retail" buyers clamber aboard. The advice given to me (after I said that I had bought) was - "be careful, and lighten your exposure as soon as you can". The final clincher was: the expectations are that LOOK will report EPS of 4c/ share (US) which should translate to a share price of US$4. Why would you want to pay 100 times earnings (ie a PER of 100)?? I think I'll be taking profits very soon.
LOK Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
