SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : SBS Technologies (SBSE) - Undiscovered gem
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Christopher Brainard who wrote (731)4/14/1999 6:16:00 PM
From: Clay Takaya  Read Replies (2) of 1540
 
**OT** (as if there is anybody reading this who cares)

It just occurred to me that I ought to clarify why I am buying ASND/LU and CSCO when both appear to be overvalued (and how!!!). My reasoning is that each is almost guaranteed to have a massive slice of the Internet buildout which is in turn almost guaranteed to be an endless project worth trillions over the next decade or so. This reasonable expectation creates a long-term margin of safety that you pay a premium for. In other words, the present is looking good and the future looks even brighter. If the stock tanks today, I can sleep well at night because I am confident that next month or next year or even 3 years from now I will eventually make money. I can't even imagine losing money at these prices 10 years from now. You would pay 200K for that Cadillac if you were sure you could sell it for more at some future point.

This doesn't mean that SBSE won't make us more money in the next few years than LU/ASND or CSCO, but it is clearly prone to massive reversals that shouldn't happen to a value stock. Even at these low prices, the risk appears to be as great if not greater over the next 5 years vs. LU/ASND. The overall industy I like, and believe that it could become an Internet-like hyped-to-the-max arena at some point. However, SBSE does not have the clearcut leadership that my "overvalued" stocks which adds the layer of risk that must be balanced against the cheapness of the stock. IMHO, the equation comes out as a buy and hold, but without the safety margin of the overvalued stocks.

Perhaps I am reacting to the fact that I sold Microsoft 3 years ago and if I had not, I'd be sipping umbrella drinks in Tahiti right now and be leaving the investing to you. I sold it off because it was overvalued.

As always, thanks for your input.

Clay.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News