<Why can't you say I made a mistake and move on.>
I admit that I'm not perfect, but I don't admit that I made a mistake. These are different if you can see it. The short answer is that I think it would be perhaps a bigger mistake to sell my positions at current valuations than it was to hold them to this point. One contention that I have with your comments is that you fail to recognize that I have traded many of the same stocks in the portfolio than you give credit for. If you look at the summary in my last post, you will see that. In fact, I have traded more shares of CIEN, CSCO, GLW, and SPWX than are now in the portfolio. There will be a better day to sell, and I'm waiting for it.
<The are low for a reason>
Yes, they are low for a reason, but not for the right reasons, in my opinion. Stocks are down because of terrorist threats, lack of confidence in corporations after the Enron debacle and alleged tax evasion of Tyco's CEO, the suicide of a CFO, etc., Of course they are down from their highs because earnings didn't follow through from the growth of 1999 and 2000, but that doesn't account for the irrational selling today. Is NUAN worth less than their cash on hand for the aforementioned reasons? Is CIEN worth only a slight premium to their cash on hand because of the aforementioned reasons? The decline in corporate revenues and earnings started the selling. That was rational, and a correction of the irrational buying late in the bull market, but now we are seeing irrational selling, and it too will be corrected with a rally. That will be the time to lighten up, not now. |
