Don,
You said, "I stuck by them [Sandisk] from $10 to $40, to $5 and to $37."
That sums it up for me also. I made my first purchase of SNDK on April Fool's Day, 1997 at 10 1/8. Then I purchased $30 calls on the way up to $40 and lost 100% on them after Harari made his pessimistic statements which turned out to be right on the mark.
The superb analysis by Rex and Jerome only reinforced what I already believed, so I kept purchasing SNDK on the way down. I bought roughly at $23, $17, $14, and the bulk below $10. My average price coincidentally is $10 1/8, the same price as my initial purchase.
Apparently, I had more faith in SNDK than the insiders who were selling in the low 20's and teens.
I almost made a purchase last year when the price jumped from 16 to 19 in one day following a couple of positive announcements by SNDK. If you remember, just after these two announcements were made SNDK informed us that earnings would be disappointing. The price really went south after that. I don't think this made Harari look too good!
I'm not selling any of my SNDK shares even though the PE of 80 is much higher than I like. Of course everything is subject to change, but right now I'm just afraid to sell any of my shares. I believe the linear earnings projections by the analysts are going to be well short of the mark. Harari has planted a lot of seeds and springtime is on the way.
Regards
NHP
(37 bid) |
