In the short term stocks are often not driven on fundamentals...

In the short term stocks are often not driven on fundamentals george, they are driven by sentiment.

In the days of the dotcom boom companies had market caps in the hundreds of millions of dollars while being years away from delivering earnings. Sentiment drove tech stocks to unrealistic and impossible highs before it all came crashing down...

On the flipside a few years ago there were solid resource stocks, making good profits on very low P/E's. I remember CSM as a classic example, P.E was around 5 and the div was close to 10%. Back then resource stocks had great fundamentals but the sentiment was low.

Nowdays it is becoming increasingly difficult to find bargains within the resource sector. Whilst I dont see the resource sector as a repeat of the dotcom experience (at least with the producers) i do believe that there are good bargains in other sectors.

LUM is a fledgling company but i have been impressed that at least now they have growing revenues being reported on a quarterly basis. I think their business model is the soundest it has ever been, Vertigo offer a much larger variety of products than the old LUM ever did and one day when sentiment does turn in favour of other sectors that are currently overlooked LUM should be one of probably dozens of other companies that will be considered amazingly cheap.

However traders will invest their $$$ in the sector that is the flavour of the day. Tech stock investors will have to be patient.