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Falling knifes, huh....I think one hit our friend Mike who I just saw on the ETCX thread at Yahoo bleeding badly. *wink* With a one day plunge of 30% and over 4 million shares traded , I think it's fair to say that there are few weak hands tonight holding VIXL shares. Meanwhile, I doubt that anyone worth mentioning has the nerve to short VIXL at 21. Withal, I think the stock will rebound or, at the very least, enjoy a dead cat bounce shortly. I averaged down today for several reasons, but mainly because my faith in management continues to be strong. I continue to be impressed, for example, with the fast and efficient manner with which Vivel, which barely had a switch when it IPO'd in Aug, was transformed, so to speak, into a leading fibre channel company with a complete line of switches. True, the transition was a few pennies harder than expected. But then again, Vixel just announced that it will begin shipping its 7000 series switches in Feb, a full quarter ahead of schedule. That good news should, I think, offset the 1-2 cent shortfall this quarter, but in any event, a shortfall so modest is hardly a sufficient reason to conclude that Vixel is worth 30% less today than it was yesterday. Stated differently, I think the Street overreacted and an upside correction is forthcoming. BJ |
