I bought FEYE on my own, figuring that cyber-security is a good thing and the founder had worked in govt. and they had unique products…unfortunately, I bought at the high. It’s a high risk stock and I’m going to bail if it makes it to $15.00. But any thoughts on it would be appreciated.
The other is SWKS which I bought in November after reading up on it on this board and doing more research on it. I see it’s down today and of course, I’m a little concerned. I think it’s because of the Apple news. Anyone have input on this?
I don’t sell easily, but I admit, I waited way too long on FEYE, thinking they will reach profitability soon.
I own SWKS, and I think with IOT and the broadening of SWKS’s markets,they should be fine.
I bought FireEye quite a while back. At the time they were primarily a s/w vendor. I thought they had some unique security products, but they turned out to be a disappointment and I sold after a few months. I haven’t followed them closely since then, but my understanding is that they’ve remade themselves into a cyber-security consulting firm. I don’t know if they still peddle their s/w. I’m not sure it makes much difference. My opinion, for what it’s worth is that they are a small fish in a crowded pond swimming with a lot of bigger fish. I don’t see anything unique about the service they provide. I don’t see many barriers to entry.
Like I said, I’ve not really followed FireEye, so what I know I’ve gleaned from reading about other companies. There are sooo many players in the cybersecurity field that I think it’s really hard to pick any winners. I still have a small position in Veronis, but it may go away in my New Year shuffle. I think Veronis does have some unique product offerings, but they only offer a partial solution at best (their products address file servers, they don’t offer anything to protect information stored in a database). I pretty much avoid the entire cybersecurity field, my position in Veronis is both small and pretty low confidence.
I’m almost certain that Saul would say to just sell the FEYE now and buy something with a lot more promise, even if it weren’t as close to $15 as it is today. The stock has no clue about the price you paid for it.
It’s hard to argue against this. Taking a look myself at some figures for FEYE, I don’t see a lot of promise, so going to $15 is a matter of luck more than the market recognizing some value it hasn’t already noticed.
Assuming you own at least 100 shares, an alternative would be to sell covered calls. For instance, the $15 calls that expire on 2/16/18 last sold for $.80 each today. Before commissions, you’d get $80 for each 100 shares you hold.
I waited way too long on FEYE, thinking they will reach profitability soon.
Why you think the company is going to reduce its SGA anytime soon?
I forgot to add something about Skyworks. I’m holding it too (about 6% of my portfolio), and I’m seeing the recent drop as a chance to buy more.
I think your FEYE money would do better invested in SWKS.