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I diversified out of qcom at the start of the year, and built positions in jdsu, gmst, and cree. Also added to my csco, emc, and aol/twx. It is dangerous to be too heavy in any one stock, no matter how strong it is or how much you like it. The more concentrated on is, the less one is likely to see its flaws or to look at the competition or to stocks in other sectors. Personally, I think the worst thing that happened to qcom was that $1000 target at the end of the year. Not that it was a bad call, I personally think it is conservative, but the stupidity of cnbc and the average investor worked against q. cnbc began to bad-mouth it not because of fundamentals but because of the target, comparing it with amazon. The mo investor jumped in, and jumped right back out when it didn't go to 1000 within a few weeks. If you notice the chart, there is a nice bubble right around that 1000 target. If he had just waited until the start of the year and called for 250 post split it would not have had that same effect. |
