Craig,
<<if you take the percentage gain in the SOX index and compare it to SNDK for the past 1 year period, the percentage gain is the same. How can this be?>>
Well, you know what "they" say, there are lies, damned lies and charts. It all depends on your starting point. Don't forget that Sandisk really started to move around June of '99, after the mp3 potential became visible, growth in digital cameras started shooting up, and cell phones/MMC products started being announced. Here is the 50 week chart:
siliconinvestor.com
Sandisk up 138% to 104%.
But look at the 80 week chart:
siliconinvestor.com
Now Sandisk is up 486% to SOX's 196%.
If you really want to see virtue in LTB&H, though, look at the 100 week chart:
siliconinvestor.com
Sandisk up 2609% to SOX's still-not-too-shabby-except-in-comparison 426%.
To extend the "lie", add charts for SSTI and FLSH into the 100 week mix:
siliconinvestor.com
SSTI is up an astounding 5138%, FLSH up 2700%.
These kinds of comps are why Larry's persistent comps of LEXR, SMH, SSTI and SNDK are silly, IMO. Especially for just a few weeks comparison. But even for a few months. I trade some stocks for sure. But by and large, I am in it for the huge gains. As Peter Lynch has said many, many times, a few huge gains far outweigh many smaller losses. The trick, of course, is to keep the losses small, not always easy to do.
Sam |
