I'm certainly heartened to see the positive developments for BHE. When my stock club purchased BHE a copule of years ago, we did not look at other stocks in the ecm industry for comparison. Instead, it popped up on a general stock screen (based on whatever variables we used to do the screen on... can't remember now).
After we bought, we learned more about the company, the industry, and the other ecm companies. Although we knew it was a second-tier company, we still liked it's valuation and growth prospects compared to the big boys. Guess we'll always be second-tier players.
After BHE's big drop, we've taken to setting stop orders on our stocks which have big gains. Right now, we have a stop order on Helix Electronics at 50. Came within 1/8 th of a point of hitting it yesterday.
Our SSG on Helix says we should sell but we want to ride our winners. Our SSG on BHE says we should buy. However, it's hard to buy after watching the stock get halved in a couple of days, combined with all the accompanying negative press.
I guess it just shows the need to be patient, to rely upon your stock analysis, and to not let emotions overcome the logic of your initial analysis.
Perhaps I should buy some BHE for my personal account. I don't know, what do you think. Go with the undervalued second-tier player or go with the top-tier player such as FLEX, even though it may have a higher p/e. |
