Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 6
One thing in regard to Citrix and its comparison with CREE.

On the L'union board we discussed at length how we saw, quarter after quarter, the financial metrics of Citrix deteriorating. It wasn't just one metric but several. Slowing revenue growth, rising inventories, rapidly rising flow ratio, declining margins, etc.

But many of us stuck by the stock (although I had dumped it for other reasons a few months earlier) due to confidence in management. Lesson learned. Know your financial metrics and follow it.

This is not the case with CREE. CREE is not even close to the position that Citrix was in. When it gets there I'll be the first one to scream fire.

Til then, buying some more and will just have to live through some volatility. Heck, this is nothing. I bought LEAPS in Rambus in January...now that was volatility. This here is just a pot hole on an otherwise smooth country road.

The way the stock price moves can sometimes tell you about the underlying fundamentals of a stock. When it falls on high volume give it a close examination. But if all fundamentals turns out A+ - then it is a buying opportunity. Also remember it is the summer and tech stocks, despite this early summer rally, do tend to drift below their fundamentals in the summer.

Tinker
Still haven't seen any smoke much less fire around the CREE story.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.