High flying stocks are often priced to perfection, and even a pebble on the road can disrupt the trajectory enough to send the short-term investors into a selling frenzy. Now that ANET is just below $250/share it still sports at 51 P/E ratio, so it is still priced pretty high. But it’s silly to be even slightly disappointed with near 46% six month return, and 149% twelve month return. I guess if you bought north of $300 you might be think WTF? But if you got in any time before January you’re still profitable even after the big drop.
I think this may be a good entry point if you have a long-term mindset and can ride out the turbulence for a while.
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Invest wisely my friends
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In government they get a set budget. If they do not spend it by end of the year that sends a message that they do not need such a big budget in the next year. I know of one VA hospital that bought a very expensive electron microscope at year end though nobody on the staff knew how to use it or had any interest. It sat in the crate for years.
Probably much the same thing happens in private industry too.
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volfan84 at about 7:34am on 2/16/2018:
Latest price I see for ANET is $272…which if that holds, several of us on here will probably feel quite good about our buys around $260 (not that we’re market timers, just slightly lucky and decent judges of market overreactions).
NajdorfSicilian from 10:09 am on 2/16/2018:
Adding more at $251?
Circling back to this thread, I did end up adding some more to top up my position at $245 on 2/22/2018.
I definitely didn’t think it would be back up to $290 here as quickly as 3/6 less than 2 weeks after the last top-up, but I certainly thought it would happen eventually.
volfan84