NEW YORK - Terex known as the King due to its translation from Latin to "Earth King" has seen its target price raised and raised lately by "the sheep" which represents the analysts community. This community is known for its inability to forecast stocks and often just change their target price to where the stock is trading. For instance most of these analysts had target prices of far lower and have changed their prices recently to keep up with Terex's run.
The king has herded these sheep for now. However it would be better if investors ignore the sheep as the sheep's opinion is often illogical and often turns on a dime (see Jim Cramer). The sheep just follow the market. They are the tail of the market. Sometimes the market moves then the tail follows but this can cause the market to make a stock go even higher because sometimes the tail can garner up more excitement. Sometimes like a dog the market chases its tail.
The King was embarrassed earlier this year by the stupid market which sold its stock down to absurdly low levels. Since then the stock has rallied close to 200%. But the stock is still down over 50% from its 52 week high. Unlike the sheep, we here have been recommending Terex for months and months. In October when the price was at $12 we wrote this piece. here. We here do not care about the markets or the sheep's opinion. All that matters is what we think Terex is worth. The market if sometimes illogical but analysts are always illogical. If they were so smart they would be investors not analysts.
Don't follow the sheep. Ignore the sheep and just buy cheap stocks like TEX.
No comments:
Post a Comment