- January 8, 2012
- Posted by: Ramki Ramakrishnan
- Category: US Stocks outlook
Nigam Arora is a market player whom I respect. He has recently suggested that Red Hat Inc should be watched because in his opinion the market is underestimating this company’s earning power and growth rate significantly. So I decided to check it out.
From an Elliott Wave perspective, however, I dont see any imminent prospect for a significant reversal. Yes, we could approach the prior highs, but just when the lay investor finally gets convinced that Red Hat was a hot stock, I suspect we will get some news or event that will act as a catalyst to send the price rapidly down to the $30 area. There are additional comments on the chart that should give you more food for thought. Good luck.