Agree. I think that's what makes this all so interesting. We're all trying to make money off this stock, just in different ways. If we can state our positions in a reasonable way, we can learn from each other. That's what these boards are for, IMO. Thanks for the post.
fish and frik both make good points, IMO. They're just on opposite of the fence. I think some stocks are for trading and others for holding. I put BRCD in the latter category because I believe the price will go significantly higher than it is now over a period of several months. Also, because its day-to-day moves are not enough to provide enough profit for a trade in the amounts I buy. Sure, BRCD is a risky stock at the moment because of its past. That's why is in the 6-dollar range. But the market for its products is improving and its products have always been competitive. So, I say hold it and weather the ups and downs. That's just part of the tech stock experience!
You say: "Now the profit has actually arrived, on a sustainable level". Nobody can affirm that at this point. Brcd has to prove it, we are only at the beginning of improving results !
I don't know how Brocade can earn $ 0.55 a share this year when on the first Q of 2006 it earned $ 0.05 per share (GAAP) and that seasonally the second quarter is weaker than the first. (If you talk about non-GAAP income don't forget that it excludes net stock-based compensation expenses, costs associated with the completed internal review and ongoing SEC investigation, provision for an estimated settlement with the SEC, and associated tax effects of non-GAAP adjustments...).
So with $ 0.05 on first Q and let's admit that 2nd Q is the same than Q1, Brocade has to earn $ 0.30 to $ 0.45 in 2 quarters... with the competition of cisco and mcdata in the 4G when they begin to offer their new products in the second half of 2006.
When selling a part of my position I just take my profit to secure a part of my gain. It is all.
I believe nothing in the stock market, I'm just here to make profit. If you believe too much you take too much risk (remember 2000...). Usually I take my profit when I have a fast 10 to 15% but I don't trade much in a year. I had followed Brocade (like MRVC, ADCT or others) for months before jumping in the rise when it broke $ 4.50.
When I say you can't beat the market, it means that you can't influence, alone, the direction that brcd 'll follow even if you "believe" so much that it'll go up, the market has always the last word. A company like Brocade has so much problems that the faith in the stock can take several years to come back...