Hi Clay,
Again we seem to be thinking pretty much the same way.
Regarding the lack of insider buying, it would not bother me at all except for the fact that they come out and mentioned the buyback to begin with. I am pretty sure that all of top management is getting enough stock options to keep them happy and to make open market purchases unnecessary. I think that when the stock tanked to below $9, they might have gotten a little scared. Maybe they were afraid that someone was going to come along and buy them out! They might have as a knee jerk reaction mentioned the stock buybacks, but when the price rose again into the high teens, there was not longer a compelling reason to buy the stock. You and I still see the stock as a very attractive bargain, they too see it as cheap, but not in need of support. The only point they have perhaps under estimated is the credibility issues brought out by their actions. To this end coming through on the operational side in my mind is far more important.
Regarding the internet infrastructure companies, I agree that they will do very well in the future. But CSCO and LU are just too expensive to buy. I would love to drive a Cadallac, but I will not pay $200,000 to buy one! I have missed out on many a good investment thinking this way, but it is just not the way I understand how the market works. Of course my way of thinking has been out of favor for almost two years now. But it will return and if I am able to live through this test of my fundamentals, I will be able to survive anything!
Early signs of life in the Russell 2000 the past couple of days. Abby Cohen mentioned today that it is possible that interest may be returning to the smaller stocks as confidence builds in the economy. SBSE should be reporting another good quarter and will hopefully have some positive things to say about the near term future!
If there has been one company that has not let me down, it is SBSE. It has been a really bad stock to HOLD these past couple of years, but the trading opportunities have more than made up for the poor overall performance. But this performance has been almost totally been a market event, SBSE all during this time has just gotten bigger and stronger. "It's the market stupid, not the company".
Take care my friend.
Chris .... |
