I am closing out Seagate Technology (STX) for non performance in a market gone ballistic. It appears it is stuck being associated with Western Digital (WDC) whose chart is a mess. HAL9000 no longer seems interested in these stocks with PEs in single digits (6ish for STX) as there are retailers with PE of 40+ to chase after. You have to respect the microchips even if you don't understand them. Western Digital actually looks like a great short set up, it has been rejected on any bounce for almost a month straight.
I've been trading around this STX position since inception early February - essentially we've made nothing and leave flat.
I will seek out a consumer discretionary stock to buy in its place, preferably one with a PE ratio in excess of 50, which are all the fashion.
Friday, March 19, 2010
Bookkeeping: Closing Seagate Technology (STX)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows