Great repost from the yahoo board .Its hard to sift through the sewage over there but this post is worth a repost here
"There's no way this stock won't move much higher as the story continues to unfold. Things aren't going to get worse as time passes, they will get even better - there's an ever-growing mountain of cash, plenty of organic growth to come, already-great margins that will improve with increasing direct sales, government imposed monopoly until 2012, existing contracts for 3-8 years, company's choice when to raise rates, accretive acquisitions in the months ahead... it's kind of ridiculous actually. Still a great opportunity for anyone already aware of the story, IMO, they even low-balled their guidance so positive surprises are pretty much built in."
Exactly correct. And that is my point. If you have been long the stock for a while, waiting for the FY results to be released, you have to be thrilled. Better still is the guidance, which as you so rightly point out is conservative because it does not account for the 10,000 new buses they will add to their fold. So clearly you wouldn't sell.
If you are new to the stock and you understand how cheap the stock is on any metric you choose (earnings, peer valuation, cash on hand, book value) you certainly aren't going to sell.
If you are a fund manager looking for growth CCME has, without exception, every attribute you are looking for. Growth on the top line, the bottom line, great margins, plenty of cash and generating more, blah blah blah. You should be buying hand over fist.
Yet the stock goes down. 3 days in a row. After the Deloitte and Touche backed numbers say "buy, buy ,buy!!! It's worth $25."
That is totally illogical.
