Good Morning everybody! This is a sad day for NITE holders - NITE has gone through 30, a level I did not think we would see this month (at worst, I thought *maybe* NITE would go below 30 in a meltdown market come October, briefly). The stock is broken, and I feel strange to even talk about "the future". This is becoming a tiresome mantra 'NITE will do well in the future' - this does nothing for the present. Of course there are certain ridiculous aspects to it - NITE is not going out of business, and neither do I believe it will trade at this laughable level "for all future" - so selling at this point, I would think is unwise - but I hesitate to advise anyone (Murli)not to sell, because the stock is under assault (REDI is again flashing big ask size), and it is frankly broken. In circumstances like this, there is no rational "level" one can indicate and say - here, it will stop - when a combination of panic and massive shorting takes over, rationality leaves. If you are on margin, and cannot withstand this thing going to whatever ridiculous level, then sell. I cited my story of LEH last year - every time I've made a real "killing" was buying at the worst "panic" moment. When LEH had a p/e of something around 4, and broke 23 - I said to myself "I don't care, I'm buying, this is just beyond stupid". One day, it will be the same with NITE. The one difference, is that I can't honestly say NITE will experience a very sharp rise, and go back to the 60 level anytime soon, because there are other issues (NITE business model may be affected by how trading is evolving). I have thought for a long time now, that NITE will have a long hard road ahead in climbing - the shareprice will remain under pressure until NITE can prove sustained profitablitity and growth. This is a matter of many quarters, not a few trading days.
OT: Retta, I do not consider my knowledge of the semiconductor industry to be good enough to express myself - as a trader, I jumped on INTC when it hit low 50s not long ago, but that was more again because of the "this is riduculous" factor (always my most profitable trades). From my limited understanding, it is better to invest in specialty semiconductor companies, but I don't have any names I have researched closely - sorry.
Morgan |
