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OmniVision Technologies, Inc. Message Board

  • cal_sunshine2002 cal_sunshine2002 Feb 23, 2004 7:51 PM Flag

    Risk and reward

    Trading stocks always has risk. The point is that you evaluate the potential risk and reward before you buy or short.
    OVTI is a healthy company with a lot cash and no debt. It is in a hot business and has had a very strong growth so far, plus the guidance is better than estimates.
    Sure, the stock could pull back to fill the gap at $25-26. It also has the potential to go to 40S in a short time. Compare to the risk, which is pull back to fill the gap and the reward, which is the stock could go all the way to 40S from here. I am willing to take the risk.
    You can short this stock, but it isn't a stock that you can hold your short position for one month, even two weeks.
    The pull back of the market is normal after the earning season. The whole market is oversold right now, we should see a reversal soon. So, this is a very good point to buy to me right now. Again, it depends on the risk you take and the reward you want to have.

    Good luke to everyone

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