Alfred, don't throw good money after bad. You can review my earlier posts/analyses in this thread, but I've been saying for a while that Avid is a company with great products, but a terribly run one at that, and an even worse investment. The news gets worse and worse, with the most recent bomb being their $4-6 million inventory charge for this quarter. That will make their loss look even worse than it has been projected to be.
True, I've made a nice chunk of change in Avid over the past 3 years, buying and selling at opportune times. I liquidated my last position at $14. Give up the notion that Avid will recover any time soon. Sure, they could announce a small profit eventually in the coming quarters, but it will be a drop in the bucket compared to their string of heavy losses. Earlier this year, I tried to counter the unfounded optimism that Avid was going to return from the mid-teens back up to the $20-plus range. Now look where it is today. I see a $7-8 bottom for this stock.
If you're holding a large underwater position, you should consider selling Avid to offset any other capital gains you might have for 1996, or you might wait until a couple of weeks into the new year, when the selling might ease up and the share price recovers a bit.
D. Kuspa |
