Hi advalorem - I sold my CNC [75% loss, yikes!] when 1) the debts were downgraded and 2) Naz tanked. I ve maintained I will do so if (1) happens. So happen that there was a huge mark down of the technology stocks (2), I figured that the could use the monies for better opportunities.
With the CEO and CFO gone [they are still significant shareholders,] I do think there is near term visibility; however, since 1) Lee & co has the convertibles, common shareholders are still vulnerable. As I ve said late last year, I don't think he is all too bad, but still business is business, if he can get the whole spoil, he may do so. And 2) look at what happens to SOC. Getting rid of Chainsaw Al was probably a good thing, but it doesn't translate to the fixing of the residual damage.
In conclusion, if one has bought in at this level, probably one has limited down side. Quite the opposite, one may even have decent gain if one is watchful, i.e., don't make it one's core holding <G>! However, if one has not entered a position yet, there are so many opportunities out there these days, be they long term plays or short term opportunities, why make life worrisome for oneself?! Heck, I would feel better to add position in CDO at this level, even though that stock is weaker than watered down liquor!
Just my 2c
best, Bosco |
