Good analysis and post, Brian, particular for the long term POV. The points you highlight as to why you remain long the stock are essentially my sentiments as well.
I guess what I and many have to learn here is how myopic the Street really is, refusing to look out beyond a quarter or two in determining a proper market cap for a stock. I think this makes sense for cyclicals, but I would argue to the contrary for growth stocks. IMHO, it is unreasonable to expect the numbers of any growth stock to grow smoothly, and sufficiently predictable Q to Q that should one single Q prove the slightest disappointing the result it to upset the longer term prospect of future growth.
Just as the path between two points is not necessarily a straight line, neither is an ascent up a mountain, or out of canyon a constant ascent. There are periods of slow ascent, even subtle descent, as well as periods of rapid ascent, but over the long term, if the effort is based in solid fundamentals (i.e. gorilla theory) that effort will result in an ascent to the top.
It is indisputably apparent that the Street, and therefore investing, does not work this way. There is money to be made with jagged turn in extremely short term projections. All I can say at this point is that these valleys between the peaks can only spell buying opportunity. |
