Sam, The points you raise are ones I've been mulling lately. Fortunately, I've recovered all the bubble-burst loss, and more. So that issue is now moot. Actually I have already decided that any wdc I sell now will be replaced with something else. Like STX.
As to what happened to my holdings in the crash, basically my portfolio was down 70% from high to low point. Also, I had a major loss with Federal Mogul Corp. Which went bankrupt from asbestos litigation that I consider clear fraud by the lawyers and most of the claimants.
But regarding wdc specifically. It is in an industry with great opportunity at this time. Their management is the very best in my opinion. Which is by far the most important factor. And at a P/E of 10, they are a bargain on current earnings. I wish there was another company that had similar characteristics.
It is no great revelation, that if one is looking to make a big return in stocks, one has to go against the crowd. I have been fortunate that in wdc's case, the crowd is being led by lying analysts and idiot fund managers. The institutional holding % dropped from 85% a year ago, to 67% now. When the institutions return to the disk drive sector, I'll be selling to them.
As a short term prediction, I think wdc is going back to 13.50 within a couple of weeks.
Sarmad |
