Wednesday, November 12, 2008

Not even cash is assured

Today's indiscriminate selling was relentless, with many of my portfolio companies falling 10% or more on no specific news. Everything fell along with the broader markets, even companies whose cash balance exceeds their current market capitalization. An example is Oplink (calls 2.3% of portfolio), whose market cap is about $120M as of today's close, while their cash balance is more than $145M. So unless they swing to cash-burning losses in coming quarters, the recent selling is completely irrational. I'll use the opportunity to buy more of these types of stocks as cash becomes available.