Friday, January 13, 2006
TAYD: Shake, Rattle, and Sold
TAYD reported strong earnings today and the stock surged (why can't they release the PR before or after the bell like everyone else?). I've been in and out of TAYD since the fall of 2004 and each time the stock has made me money.
I must admit it was a bittersweet feeling to sell my TAYD shares. I like the company and its prospects and I like the idea of investing in a company that makes products that save lives during earthquakes. But while the earnings were good, they weren't amazing (two quarters ago, TAYD reported revenue and sales that were both higher than what was in today's report, and back then the stock was trading in the 3 dollar range). Furthermore, while the company's guidance that revenue and earnings will be substantially higher in 2006 than 2005 is laudable, that's not a particularly tall hurdle for a stock that currently trades at a P/E of 70. Anyhow, I sold all my shares at an average price of $5.50 per share. Hopefully I will be able to buy them back later at a cheaper price, but if not, there are plenty of other great stocks out there.
TAYD capped off a strong week in which my portfolio gained $25,721 (4.1 percent), outperforming the S&P 500 (up 0.2 percent), the NASDAQ (up 0.5 percent), and the Russell 2000 (up 1.3 percent). In fact, this was the best week for my portfolio since the last week of 2004, when my portfolio gained nearly 10 percent (due to, coincidentally enough, a massive surge in TAYD's stock).
I'd be remiss to end this post without mentioning VTEK's nice 11 percent move today. In my not so expert opinion, that stock is just too undervalued to stay under $7 much longer.
I must admit it was a bittersweet feeling to sell my TAYD shares. I like the company and its prospects and I like the idea of investing in a company that makes products that save lives during earthquakes. But while the earnings were good, they weren't amazing (two quarters ago, TAYD reported revenue and sales that were both higher than what was in today's report, and back then the stock was trading in the 3 dollar range). Furthermore, while the company's guidance that revenue and earnings will be substantially higher in 2006 than 2005 is laudable, that's not a particularly tall hurdle for a stock that currently trades at a P/E of 70. Anyhow, I sold all my shares at an average price of $5.50 per share. Hopefully I will be able to buy them back later at a cheaper price, but if not, there are plenty of other great stocks out there.
TAYD capped off a strong week in which my portfolio gained $25,721 (4.1 percent), outperforming the S&P 500 (up 0.2 percent), the NASDAQ (up 0.5 percent), and the Russell 2000 (up 1.3 percent). In fact, this was the best week for my portfolio since the last week of 2004, when my portfolio gained nearly 10 percent (due to, coincidentally enough, a massive surge in TAYD's stock).
I'd be remiss to end this post without mentioning VTEK's nice 11 percent move today. In my not so expert opinion, that stock is just too undervalued to stay under $7 much longer.
# posted by Stockcoach @ 9:59 PM 
