Paul,
Ordinarily I would agree with you, BUT (you knew that was coming, didn't you?) SNDK isn't just a play on digital cameras. They are also a play on MP3, they are a play on cell phones, they are a play on all portable appliances that will benefit from having non-volatile memory which includes a lot of things that we have thought of. And, as we all have said on this thread numerous times, their patents make them a gate-keeper, and their focus on this market make them potentially the "nimble" player, if their management can keep up.
I have to admit that I sold some of the shares that I picked up last fall in single digits a few weeks ago in the mid-30s, before I went on a vacation where I would be out of touch with the market. I did so because I was and still am fearful of general market risk, and wanted to raise some cash, SNDK and a couple of other winners seemed like the best place to do this. Those were the first shares of SNDK that I have sold, having first bought them years ago. So I have aleady been all the way up and down on the previous trip, I know what it feels like, believe me. However, my remaining shares stay unless, perhaps, the stock hits triple digits over the next 6 months, where perhaps I may sell some more. Its potential markets are too large, its patent position too strong, and its management's ambitions too outsized to settle for a "mere" 40x earnings at this stage in its development. The next couple of years will see some explosive growth in revenues and earnings to justify these valuations.
Regards,
Sam |
