Cepheid (CPHD)

Every year many stocks get pumped up on hype in one way or another.Everything from save the world to new cures for lockjaw. This tradition is older than I am and the markets are loaded with these company's.If They gain market hype then they are mostly used for pumps and dumps by institutions and will perform nice returns sometimes 2 or 3 times a year.A simple rule of thumb on long term investments that has been tried and found true for more than a decade in the market.If a company's shares reach above $20,then it must be atleast turning a profit and showing growth,or it is overpriced, anything over $25 a share,(must be showing a profit),(fair amount of growth) and (be paying a reasonable dividend) or it is overpriced.Also when management scatters out their financial documents like dirty laundry kicked under the bed, instead of keeping everything in order and easy to read ,then $5 is overpriced,Company's that are thriving don't worry much about trying to hide financial statements,but I did finally swim through it incase anyone wants an idea to further research. OK,Net profit margin (minus -22.00%) and fallen. Income (minus - 25 million) and falling with Income growth minus -19% (Two positives,and the (first bigger than the last. dept/equity ratio around zilch)always a +PLUS, and it is showing about 3% sales growth,(Paying no dividend),but they do offer billed golf caps the beginning of 2009,which brings us to fair value $3 when the air of hype is let out by the market, NOW,unless they should invent the new wave toilet paper or bouncy rubber,or baseball caps with headlights and steering wheel or something,then the shares are way overpriced.