I was recently shaken out when it fell to $20 after buying around $21, then watched it fall to $16.50, for no reason. I'd love to load back up right here under $21. Its one of the cheapest stocks I've ever come across. but how can one load up when they could take it right back down? Does earnings not matter when you're trading at 12 times forward earnings? it matters to all the stocks with a 100 PE..I dont get it. But thats the market
I was kicking myself yesterday for not buying in the $16s. I actually got lucky and dumped my shares at $22.20 in the AH and just bought back most of it at $19.43. Let's see if it holds the 50 day SMA at ~$19.20
Earnings do matter eventually. Small high growth stocks like this can often suffer volatility because there are people that do not believe the growth story. But reality eventually asserts itself. And by eventually, I mean within a year max. I have never been able to predict short term stock movements, but I know that tech companies that show high growth and profitability always end up flying upwards sooner or later.
Check out UBNT which had hit me with a loss of almost 50% before giving me over 200% profit. Or AFOP which I bought a couple of months ago in the 15s and had to suffer while it plunged to 11 before recovering to the 19s.
You have done the hard part. You have chosen a company that is very successful and and has great growth. Now comes the easy part -- waiting till the market realizes this. It may take a while and some wrongheaded shorts may get burned along the way, but it will happen.
Now we had a massive beat in seasonally weak quarter. It is well known that SMCI tends to undercut their forward projections. Demand from asia is getting fired up this quarter and all reports from taiwan point to a red hot server market. This baby is going up. I cannot tell you exactly when but it will.
Too many nervous Nellie's in this stock. The price starts to tank and everyone bails. This is a 15 PE technology stock that is growing earnings about 20% or more. I think if this stock had American management we would be approaching $30 per share. There is definitely a penalty for Chinese management, but even with that, today's price action is hard to fathom.