I too am a little disappointed how the street treated a great quarter.
Were you planning on liquidating your position this quarter? If so, then as a fellow human being, I feel bad about what happened to you, but as a student of the markets, I know that strong downdrafts after an earnings release are the norm with tech stocks. (in fact, didn't NTAP's big fall, from 120 to 45, start right after their march earnings release?) I also know that volatility is, as James Joyce says about something else, "inevitable but impredictable."
If you were not planning on liquidating your position this quarter, then the stock is a victim of a temporarily inefficient information mechanism, working in your favor. Imagine, if you will, that your local Lexus dealer mistakenly thinks that the Lexus in the showroom that you have your eye on is a Kia -- would you complain that the dealer misunderstands the Lexus, or would you grin, pretend to agree that it's a Kia, and buy all you can?
I am not a proponent of blindly and automatically buying the dip. That can be suicidal. But some of my best long-term positions were established by stepping up when short-term negative sentiment started circulating about a good long-term tech stock. As always, YMMV. |
