You've got to look at this as a continuum. When the level of risk becomes unacceptable for each person, they sell their stock. New players enter, willing to accept that risk.
EMC will be a long term performer, granted. However, when you can make 20% on your money in 3 weeks, it's acceptable to take that profit and wait for a re-entry point. Yes, the LT line on EMC is wonderful, but again, those types of instantaneous gratification events (selling for cash) are very hard to pass up.
Hopefully those folks who sold at 24 made money in 1997, so are gratified by their sale. Those who sell and have faith in this stock are those who believe LT, but who may be ST spooked.
It's better to take a profit, and re-enter a little higher or earnings(like after earnings, for example) than to feel uncomfortable that the stock may be ahead of itself ST. |
