The institutions are not going to sell just because one unfavorable article in Barron. They also tend to not trade very often because of the cost and the amount of shares involved.
Obviously, all investors, including me, will sell the stock if the potential revenue does not materialize. But there is promising signals that major contracts with OEMs will happen soon, that's all what we're waiting for. After the contracts are announced, then we will have to evaluate to see if the stock is already fully valued yet based on the income from these contracts. The strategy "buy on the rumor, sell on the news" mostly applies to biotech stocks. When the FDA approves a drug, the stock will go up quite a bit based on the potential revenue from that drug, but then the stock will drop immediately after that because investors then realize that it will take years before the co. will make any profit from that drug.
In the case of SYSF, it's a different story. If Intel or another OEM offers a contract, the revenue will be realized immediately or within one or two quarters. So people don't just sell the stock immediately after the news but will do when the stock is fully valued or over valued based on the income from the contract.
I would consider somebody a short term investor if he/she sells a stock just because it has gone up a few points or whatever percentage points that fit his/her criteria, or because he/she has hold that stock for so long, regardless of the potential of the company in the future. But stocks such as CSCC or ASND continue to triple/quadruple every years for the last 2 years.
In my opinion, SYSF is not fully valued yet and I will hold until it is fully valued. Time will tell if I'm wrong or right, I don't have the crystal ball either. But I don't call somebody a short term trader if he/she doesn't want to buy SYSF or want to sell SYSF because he/she thinks it's overpriced. You should use your own judgement to make your decision. After all, it's YOUR MONEY.
Mikee. |
