To: Frodo Baxter who wrote (10104 ) 1/20/1999 8:04:00 AM From: rest42 Read Replies (1) | Respond to
I think the only major departures from wdc,I think,will be those that have been buying for an earnings surprise to the upside.Those traders will move on.The stock might go down but it might go up,too!I have been in companies like novel and compaq and micron many times,losses are not as important as are trends-directions.Wdc presents more upside than downside at this moment---why?Simple!Lofty stock prices bring drastic corrections---wdc is off more than 50% of its all time high-it is on the mend-it has viable products-it has worlwide presence-it has serious oem relationships--it has plenty of room to improve its performence.It is bringing new products to market,it is paring losses,it is already been trashed,whipped,and gorged!The haircut,wdc might get today shouldn't be too significant,but the upside run over the nearterm future could be stunning!Personnally,I like to buy hammered companies that have great turnaround prospects,because their downside is so limited.I bought wdc from 9-10 dollars a share.Recently,i picked up Global marine at 9 dollars.Global announced a horrible earnings report yet it didn't break thru my entry point!I f over the next 12-18 months glm goes to 15-you figure out my return.The worst case scenario has already happened so i took out any 50% haircut and three year recovery wait!Say what you will,but a 5-15% correction is on its way,and at the first hint of trouble many of these moonshots will correct better than 50% and the mindset will change and three weeks later they won't have recovered,but i will be on my way to 20-40 % returns on todays dogs.
