Michael, I buy the stock not the company. If I want to be part of the company, then I'll apply for a management position there. As is the case with all stocks, two broad factors affect them. The company they represent, and the market perception of that stock (or company). Each of these factors can be broken down further. The company's worth can be analyzed based on growth prospects, safety, industrial strength, peer comparison, etc. The stock perception can be divided into, long time (more than 2 years), intemediate (more than 3 months) and recent (less than 2 months) share holders' perception. And the not-yet-invested market participants' view (based on sector rotations and price action)
While it is true that not much has changed with 3Dfx the company, a lot has changed on the TDFX front. Many of the old shareholders are gone. The new ones are making money and thus have a positive psychology with regards to the stock. And the company itself is receiving better reviews from the analysts. So I beg to differ; a lot has changed in the past month.
On another note. It occured to me yesterday after the close, that if one was unfortunate (and slow) enough to have bought the stock at 33 (i.e the closing high) but had spent the last 6 months to educate himself and remedy those two shortcomings (i.e becoming nimble and taking advantage of the trend). Then yesterday would have been the break even point for such a person. In other words, going from 33 to 8 was a 76% loss, but going from 8 to 14.25 was a 76% gain. Yes I know that in reality this person would be actually a lot ahead in the game as the more appropriate calculation is going from 33 to 14.25 a 57% loss and going from 9 (a very possible entry point) to 14.25 a 58% gain. Anyways, these were just my idle musings :)
Sun Tzu |
