If it does, I'd be a big buyer.
On a macro level, the telecom equipment sector will be a winning sector for years to come due to the need for increasing bandwidth. George Gilder himself predicts that wealth creation will transfer from silicon wafers to bandwidth. If ADC can keep up with the industry, and there doesn't seem any reason why they can't (afterall, only several months ago they were the darlings of Wall St, like Tellabs is today), then you will make big money over the span of 3 - 5 years.
I consider everyday if I should trade ADCT or just hold. Sure, trading gets you short term money. But it also gets you heartache, taxes, and to a lesser extent, commissions.
So, buy on the dips. As is frequently the case, investors don't alsways catch the bottom price of a security, so you just average down, assuming the fundamentals are still strong. Also, the new cap gains tax law favors holding in excess of 1 year, and even more so, 2+ years.
It will be interesting to see where we end up after today's trading. If HWP can finish higher on a day they released BELOW expectations, well..... |
