fish.and.chips asked in an earlier thread when i would be willing to buy SILC.
this is a tough question to answer.
i've always liked the idea of buying SILC at Tangible Book, plus 2 bucks, since we know the company is probably good for 2 bucks more earnings no matter what happens with the economy, competition, etc. i would stick to that way of thinking in a relatively calm environment, and look to buy the stock around $10.
but if we get a nasty bear market, and SILC is getting thrown out with the bathwater, i suppose i would look to scale in thirds at book, $1 under book, and $2 under book.
this is, of course, presuming SILC's model was still showing the same promise it does today, but was being sold down due to the business cycle, debt cycle, whatever.
i realize this means i may never own SILC again, but this kind of thinking has allowed me to catch two powerful runs in the stock (2006-2007) and (2008-2011). so why mess with a good thing?
p.s. check out SILC trading with a 5% spread this morning, with 100 bid and 100 asked. if that keeps up, i suppose i'll never own SILC again, no matter what the price.