Yes, me too. You talked me into it. <VBG> Actually, I was thinking of adding shares anyway becuase we are sitting on a support point that appears to be holding, and if it does, a move to 12-14 could be in the cards.
I do agree with your views as to the market situation as a whole. I have many long term positions which are not for sale any time soon, but other than that I sold many of my holdings, or sold covered calls against them. I do still have holdings in the sleazy financial group (i.e. pawn shops and rent-to-own) that I plan to keep. But TRKN is my only active naked tech holding right now other than ASND (unless you consider USF a tech stock).
The woes in the disk sector are totally expected though, and come as no surprise. I told you to stay away. As long as IBM continues to dramatically increase production every quarter with the intention of becoming #1 in the disk and head market there will be a production glut especially at the high end, but price softness at the high end also implies softness at the low end. WDC and SEG are hurting because they haven't made the transition to MR yet so they have to compete on a price basis. Quantum is in a much better position because they have. But to say that because the disk sector is weak, the computer makers will be weak is silly - for one, CPQ has been telling analysts that they will post incredible earnings this quarter.
As for the equipment group - AMAT, LRCX, KLAC got so hot that they became overpriced anyway, and a little drop is not a bad thing. I still think that with their overpriced stock a stock acquisition of this small company might have been a valuable addition for some of the other equipment companies.
I don't think a market downturn will affect TRKN much because its value is more likely to be determined by changes in fundamentals. I would agree that another break down would be a bad thing, except that I would use 8 rather than 7.5 as the support that I am looking to hold. I am looking for the stock to continue to close above 8.5.
Good luck in this thing,
Carl |
