GTAT Soaring

Perhaps my best buy of the year has been GTAT. I have profiled them several times here as a manufacturer of solar equipment and and up and coming manufacturer of sapphire- based materials. The solar has been their bread and butter and they suffered through the recent down turn with the rest of the space.

They were priced several times this year like a firm with absolutely no future. They had traded in 2012 in the $7 range, but started 2013 at a very cheap 3.03. I bought them shortly after the start if the year, and had about a 15% gain. I then sold and re bought in march when they sunk to 2.73 (almost the 52 week low).

I got nervous and sold for another nice gain a month later at 3.41. At that time, I was reading Seth Klarmans Margin of Safety and I began to believe that GTAT was exactly what Klarman was talking about.  So I re bought (again) at 3.39 (a couple cents cheaper) but this time I committed to myself that I would not settle for a small double digit gain.  So I have been holding strong since April and was rewarded today with almost a double digit gain to $5.00. So I am actually getting close to a two bagger in A three month time span. It may be stupid, but I am not selling. If just solar comes back, this is a six or seven dollar stock. If the sapphire thing starts to gather steam, this is a nine or ten dollar stock. I think I will wait to see what happens.