MSGI: PRICE TARGETS ARE A JOKE!
I have said this before and I hate to belabor it, but IMO anyone who puts stock in that ... well, I have a bridge for you. I don't mean this personally toward you - I mean it personally towards everybody else. I want to save everybody else from wasting time on it.
I'm a TA guy just as much as an FA guy. Nevertheless, P&F charting is MAYBE good for a very short term - but no way is it valid for the price targets. It is nothing more than a momentum tool - which is fine. If you want to play momentum, go for it. But, if you want to INVEST, it is worthless. The thing about momentum is that you never know when it will end. Price targets are figamag's - period.
YOU used DCAI for $38 as evidence. There are lots of holes with that. But, of all the holes, only one point needs to be made. The $38 price target was B-E-F-O-R-E they changed it to $10!!! Remember that? DCAI drops from $17 to $15 (or whatever it was) and overnight, they drop the price target from $38 to $10. Now, that they were "wrong" on the $10, you want to go back and use the $38 that preceded it because it shot up to $30 and now they have changed their "target" to $61.50 from $10 as a result of that? You don't see the problem with that? All the "price target" is doing is staying well out ahead of any significant daily move. That's it. If DCAI drops to $20 on Monday from $25, the "price target" will be back at $10 as sure as I'm writing this. That "tool" is momentum only. Investment analysis does not work that way. I guarantee you I can find a way to make every price target on earth look right (this is how they sell newsletters) if I wanted to. But, it would also be a croc of crap.
I really don't want to debate it anymore. You know where I stand. I rode DCAI up from $1.50 to almost $17. I got my share. Anyone investing in it at $30 is INSANE unless they know something. And, unless DCAI signs Howard Stern, if it hits $61.50 anytime in the next few months, not only will the PE be around 300 for a kidney dialysis treatment company that has been in business for years with 18 cents a share in the bank, but I will be inclined to sell every stock I own and move into the bunker because I will know the end is near!
Lastly, you wrote: "This will no doubt spark renewed buying and the $38 price target will no doubt be met by the close tomorrow." NO DOUBT? As McEnroe would say, "You canNOT be serious." - can you? Do you honestly believe DCAI is going to hit $38 (the old target before they changed it to $10) on Monday? Because if you do, here's the deal. I lost a bet to KOZ the other day and it cost me $30. I'd like to get even. You game?
Len
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