Today's price action is not the least bit disturbing. In fact, it is very healthy. No stock ever only goes up even though we all wish they would. All stocks take breathers which shakes out weaker hands and provides the "dip" on which others buy.
When SILI dipped from a high of $52 back to $43, it was a buying opportunity. In fact my initial shares were bought in that dip at $45. When it dipped from a high of $98 back into the $80s, it was a buying opportunity (the split announcement and the gap from $89 to $121). When it dipped back from the $120's to the low $100s it was a buying opportunity (it ran from $108 to $161). When it then gapped from $161 to $200 and hit an intraday high of $245 (actually it went from $128 to $245 in 3 trading days as I recall) it dipped back to $180 and was a buying opportunity. I picked up more shares on this dip at $200.
The recent run to an intraday high of $281 has also been followed by another dip: IMO it is or will be another buying opportunity. We can seldom buy at the exact low or sell at the exact high (as evidenced by the shares I sold at $48). But, when the fundamentals continue to look good, when everything else looks positive, when there are upcoming events to drive the value and visibility, dips are a way to take a position or to increase an existing position.
Is it possible we could see $240 again? Yes. $220 again? Yes -- even though I think it is unlikely. $200 again? Very doubtful. Is it possible we could see $300? Almost certain; $350, $400, $500, $600? I think all of these prices are more likely than $200 again.
If it dips back below $240, I will probably buy more, because it will be a real deal. If it does not, then I'll be happy to watch my existing shares continue the climb. I still, fully expect to see $150 to $200 post split within 6 to 12 months. I also expect to see at least one additional split in less than 12 months.
Troy |
