Sun,
Right now you seem to be deciding whether to dump 3Dfx or not???
Don't sell! It seems you are looking for a lot of 'rational'
reasons for selling this stock. I enjoy reading your posts
because your investment style and mine are similar. But one of the
best investment concepts is from your 'Art' of investing forum:
"From 3dfx I learned that it is not enough to know which stocks to buy; I also need to know what kind of share holders are in control."
Rational reasons for buying and selling a stock are important,
but the perception or even irrational forces involved drive stock prices higher and lower. Good example would be AMZN etc. On the other hand 3dfx has more solid fundamentals, and yet is probably my worst
investment to date (in over 14 years). A lot of the reasons have
to do with the shareholders of 3dfx destroying their own investment!
Too many weak hands in this stock, and it all started with the
in-explicable fall after blow out earnings. I don't know why,
but believe one possibility is close to the general consensus
that too many people were in love with this stock because they
like 3dfx products and not because they researched it for an investment.
Unfortunately, I used to read posts on this forum that "I bought
this stock because my son says their products are cool..." Now
I see none of those posters surviving the last few months and
would bet they have bailed on us.
Good riddance! And anyone else who doesn't think we are at the
bottom I encourage you to sell now! I am holding on long term:
price target - $40. Bottom line: this company made
money this year. A lot of the index stocks made a lot less per
share. This company has little or no exposure to declining overseas markets, much less Russia. This company has a growing brand awareness
and is backed by strong products. This company is carving out
a niche market for itself, and has the potential to dominate it.
Declining cost of PCs will help this company, not hurt it.
Been a lot of gut-wrenching in this stock. You get a lot of credit
for asking people to call in their shares. My belief is that helped
us this week, or we would now be < $7. People tried to short
when the news was announced, couldn't get shares. A lot of weak hands are now out. It does make a difference: now is the time to buy.
Interesting how much attention 3dfx has gotten lately such as WSJ. Did anyone else catch the analyst coverage on CNBC yesterday morning?
Waldeen |
