AWRE is my largest long position and did pretty well. In the past couple years practicing value investing, I found there are times (once every couple years) that good growth companies can become value stocks. That is the best time to buy them. Couple years ago I bought PHTN at under $3 in anticipation that flat panel display (including laptop, notebook and handheld computers) will go main stream to replace CRT monitors, it was at book value at that time and PHTN was well positioned in FPD industry. It turned out to be a huge winner (touched $90) and I sold some at $70 two years later(should have sold all at that point). I do have other value stocks which are under book value or even under cash, but just continue to go down since they are in the wrong business (such as retail) without growth potential but fierce competition.
So I adjusted my investment strategy to finding growth/value stocks at the low point (industry recession, such as semi-conductor recession couple years ago). Well, Telecom industry suffered a huge loss in the past year or two, many companies went out of business. It is almost the most painful times if one hold telecom stocks for the past 2 years. Ironically I found some telecom companies with good future potential selling around/under book value. AWRE is the one I liked the most. It is an IP company so it has no inventory to writedown, it suffered a lot due to its customers were experiencing very tough time, and that is why AWRE was trading around book value under $4 couple months ago. I started accumulation under 4 and continued on the way up, so far it is doing very well. I am in electronics/computer industry for over 10 years and I think Internet is really becoming part of everyone's life, high-speed Internet access is something I can not live without. Practically there are only two ways- Cable modem and DSL. AWRE is the DSL IP company. I hope high-speed Internet access will grow faster and AWRE maintain its technology edge, and my big bet on it will pay off in the next year or two.
I also picked up DITC as my second largest bet, and CIEN my third. Those 3 are around 3/4 of my portfolio.
You are welcome to post your comments on those stocks and your investment style.
Thanks, Steve |
