The Man In The Mirror
It is so difficult when investing to maintain conviction in the face of a decline stock price. GTAT in the month of July dropped 30%. When your largest holding drops like that, every day you think about selling it. You wonder whether people know something you do not know. Tons of rumors:
Apple Might Not Use Sapphire, Short GT Advanced Technologies
Apple Supply Cuts Are Killing GT Advanced
GT Advanced Technologies Down Sharply On iPhone Production Concerns
GT-Apple accord questioned
GT Advanced faces bearish play
Toss in the fact that the CEO has been selling:
Insiders Are Selling at GT Advanced Technologies: What Should Investors Do?
And it is easy to lose conviction. Luckily I did not and it looks like the stocks should bounce nicely tomorrow on re-iterated guidance:
GTA Surges 13%: '14 Rev View Lower, EPS View Higher
Now I was not "brave". I did increase my share holdings by 28% during the drop - sadly nowhere near the bottom (I bought at $16.58). But at least I held me shares. I also bought back my call options, so if GTAT spikes above $22 in September, the gains are all mine.
So today was a solid day, I was virtually even with the markets. Tomorrow has the chance to be very good as I suspect GTAT could benefit from a short squeeze (40% of the available shares are shorted). I hate to give advice, but readers might want to get in tonight or first thing tomorrow as 40% short is a lot of covering. Please do your own analysis as this type of play is always risky.