Sandisk and MRVL (and BCSI)
We sold MRVL yesterday at $63.
We are going to sell SNDK. The market has turned very much against Sandisk and other NAND manufacturers. Most of the pain has already been felt, but I see no positive sentiment. While I maintain that Flash memory is the product to be in, I'd rather not fight the sentiment. We can always buy back in once it bottoms.
BCSI - someone asked my thoughts about BCSI. I don't like companies that miss earnings. They did it once last quarter. They did it again this quarter. I believe that this market niche is hot, especially with the digital download activity. BCSI's results were impressive
Sales up ~45%
Earnings up 1000% (yep, from $0.02 to $0.20)
But analysts expected $0.27. Worse, the company gave guidance that market share growth is slowing (if not stopping).
We are going to sell SNDK. The market has turned very much against Sandisk and other NAND manufacturers. Most of the pain has already been felt, but I see no positive sentiment. While I maintain that Flash memory is the product to be in, I'd rather not fight the sentiment. We can always buy back in once it bottoms.
BCSI - someone asked my thoughts about BCSI. I don't like companies that miss earnings. They did it once last quarter. They did it again this quarter. I believe that this market niche is hot, especially with the digital download activity. BCSI's results were impressive
Sales up ~45%
Earnings up 1000% (yep, from $0.02 to $0.20)
But analysts expected $0.27. Worse, the company gave guidance that market share growth is slowing (if not stopping).
posted by Andrew at
6:13 AM
3 Comments:
How is the performance of LiveRocket for this week ? Any new recos for buys/sells.Friendly advice is that I would like to see a disclaimer somewhere in your blog,so that people don't blame you later for their losses while trading.
Whats your take on DNA, MYOG, UPL, and BCSI? BCSI has been beaten up lately and I am down 50% on that, wanted to find out if to hold or sell. Also got in today in NTRI at 42.69. BTW, whats your criteria for picking up stocks? Pls can you post your stock selection strategy etc, for example how uou found out NTRI, TRID etc.. Thanks a lot.
Jitendra
Thanks for the suggestions - I will be moving to a disclaimer shortly. Ideally, I wish all stocks will only go up, but that isn't in my control.
By now you've seen the new buys and sells.
BCSI - I have reviewed this several times in the last month. We got out after they missed earnings the first time. LiveRocket's investment approach does not forgive earnings misses. I stayed in BCSI in my personal account because I am much more aggressive in my personal investing objectives. I stayed in until this recent quarter because, sometimes, with a small company, earnings volatility can be impacted by a simgle large sale. I had them on the Liverocket list of stocks I was considering adding back pending their performsance. They missed earnings again and gave terrible forward guidance. Unacceptable.
Now for the good news. They are still doing phenomenally well (earnings up 2X over last year and they beat expectations). Right now they have a 22 P/E, which is quite low for a company growing as fast as they have been. That's the key - analysts are scaling back under uncertainty.
The underlying trend for this market is up - but BCSI has stumbled. The next quarter or two's results could either be very ugly or very good.
I am sorry that you are in and rode them down. You could either wait this out and hope that they recover position or you could walk away and try to recover some of the loss in another company. Another idea would be to do both - cash out half and stay with the other half. As an FYI - I got out.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home