"...4 years now..."
Greetings
Thanks for the info... figured there had to be people out there like you... with stocks like vtss (but never met any)... someone has to have: found them/ bought them/ kept them... congratulations! <g>...
Let's see: '93 Vitesse... cost basis between $2 and $3... you must have bought in just about the time their business model was crumbling...loss for '93: (.88)/share. Steep decline in the supercomputer industry and defence business was drying up... it must have looked somewhat bleak...
So these guys (vtss) decided to scrap their business plan and position themselves for data and telecommunications. They decided to develop products for an info superhighway which virtually no one else saw coming and asked for patience as it would take them a couple of years to reach the marketplace...and in the meantime ('94) they would continue to lose money <.19>....
So after what I would guess was a rather painful and prolonged period, it probably became clear they were going to make it.. by 95, the stock was up and they were back in the black... .06/share. Would guess many cashed out worrying about competition, earnings, etc etc...
I know the story through 96 and now 97. "overvalued...few major customers...problems with yields, silicon is closing in etc, etc"...no doubt a familiar refrain to an old timer... now it looks like they're...in the sweet spot of an exploding market...then again ...
In review... buy at the bleakest time in a declining industry, picking management that has the technology and the expertise to execute and produce product a couple of years out which will be key for the underpinnings of a new infrastructure that no one knows about yet... and, just to be sure, find a technology that is obscure, complex and capital intensive enough to discourage competition... continue to hold in the face of a constant barrage of articulate, logical, compelling reasons to sell... and just to make things interesting pick a stock which now and then does a bungee jump to test the nerve...
...seems easy enough, now what's the trick?..<g>
...so i guess if i get my 10 bagger you get a....? <g>
...did i get the story right?
best wishes
s |
