Mary, RE: a number of investors are spooked and sell their shares. And, when the shares eventually recover as has been the history with Intel, these investors never come back. They are lost forever.
I will not mention names, but we have a contributor on this thread that had a large position in Intel (many years ago)
and sold most of it, encouraged by Kurlak (I believe), and returns ever so often, whenever Intel stock goes down, and comes back kind of wanting to justify his original decision.
I am pretty sure people like Kurlak and the VLW Joe Osha have a lasting impact on individual investors and Money Flow goes out of Intel (and sentiment goes out) - never to come back.
If it wasn't Kurlak or Osha on Wall Street, it would have been something else. A person that sells a position based upon what a single stranger had to say wasn't going to be a long term shareholder in the first. I don't care who that stranger works for.
Stocks like INTC seem to attract the likes of Kurlak, the VLW Osha, and Drew Peck; but I never see anyone dissing GE or SUNW. BTW, I'm not wishing a Kurlak, Peck, or a VLW Osha on GE or SUNW.
My guess is that you just might not follow GE as closely. Last summer, it was all the rage to call GE 'a hedge fund in drag', paralleling a comment that an analyst and a couple of hedge funds were relaying rather loudly. Of course, they were rather wrong, and you don't hear to much from them right now.
For SUNW, you are pretty much correct. Of course, it helps that SUNW has had an accelerating business and stock price, which scares the beejeebers out of analysts. Intel, OTOH, is just cyclical enough to invite the naysayers when the periodic downturn occurs. When an inevitable downturn hits SUNW, you'll see the bears come out of the bushes. Of course, by then the stock will already be down 50%. |
