I don’t want to hear back from you when SUNW is sitting at more than $5 a share that you should have bought when it was below $4. It’s moving around the $3.50 range — rather wildly, as usual — and you could easily set a limit order at $3.50 and pick up some shares.
What’s that you say? The news is grim? That’s right, and that’s when you buy. When would you rather buy? When the news is great and the stock is leaping 5% a day for two weeks? That’s how it goes with Sun.
By the way, I told you this was coming last July. Here’s an excerpt:
All this madness [of quickly-rising stock prices] is par for the course and a blessing, actually. It enables smart folks like you to chuckle and sell when the headlines are good, then chuckle and buy when the headlines are bad. When I bought Intel at $14.50, it was the end of the chip era — according to the news. When I bought Sun at $2.90, it was the end of the workstation. When I sold each, it was the beginning of an Intel chip upgrade cycle and a Sun Linux revolution.
I think soon we’ll be back to a hopeless future and tantalizing prices. And then we’ll buy.
As you can see from today’s headlines, the hopeless future has arrived.
Do what you must, but remember that I don’t want to hear any whining later when this stock has doubled. You have had and still appear to have plenty of time to get your orders in.
One more thing. The tech sector is pretty hot these days and a correction might be just around the corner. A nice side of owning Sun at these prices is that it’s moving contrary to the rest of its sector. The others have been up, Sun’s been down. There’s not much bad news left with Sun (I hope), so it might be the one that doesn’t have far to fall when the worm turns.
Enjoy the weekend.
