Good points sam...
Yeah, there was a definite reason for the Q to take a hit. But these days a high PE and analyst downgrades and warnings from the likes of Cisco...that is still plenty. I've owned plenty of stocks that fundamentally looked fine but down the road things got rocky.
BRCM sported a sky high PE (and still does) because NO one even suggested that anything would be hurting them in the long/short run. That picture has now changed dramatically.
The stock is in a major downtrend now with no support insight technically until 110-120. Don't know if will get there, but with that kind of uncertainty I doubt there will be much support until that point holds for a good period of time.
You probably know I don't short stocks and you definitely know I don't play those kinds of basher games. I made a similar post on the AMCC thread some time ago because several old poster buddies I know hang out at that thread and hold a position in the stock. Things have continued to get ugly there as well. Sincerely I just thought I would inject a bit of reality that I learned the hard way with the Q experience.
There were LOTS of people, some I recognize here, who continued to go on and on about how there were big block sales in favor of Q and that there was manipulation of the stock and that funds were buying...blah, blah, blah...and they continued to buy, buy, buy...all the way down...justifying their purchases with the long term buy and hold gospel lyrics. Well my idea of being a successful investor is not getting creamed or cut by those falling knives.
It is a basic pattern that dropping stocks do eventually stop dropping and then bounce around for awhile...making bases, retesting, etc. etc. It is one of the few things you can really count on in the market. When I see what I think are experienced people trying to fight that pattern by buying shares of a falling stock, I shutter. I have learned that it is probably the stupidest thing an investor could do. Yeah, I've heard all the dittys about good companies always come back...blah, blah, blah...but the fact of the matter is that often those kinds of statements are used to justify poor investment decisions.
Good Luck to you,
Rick |
