Silicom Ltd. (SILCF)

[midastouch017]

The number one share in the global recovery, Silicom Connectivity Solutions Ltd. (Nasdaq: SILCF), which increased its value 37-fold since hitting bottom in October 2002, is still soaring. What’s interesting is that it has all happened on not particularly large trading volume. Because I know very well some of those who bought the share at $0.20-1 three years ago, I asked some of them why they weren’t selling. They answered me with a question: “Are you selling?” No, I didn’t sell, because the share has been rising like crazy without anybody knowing which giant companies are buying Silicom’s bypass adaptor. The job of this device is to prevent loss of data in the event of a malfunction in flow, such as a short circuit.

If this is how the share goes up without anyone knowing who the all the company’s customers are, things will surely get even better when the secret becomes known. The company announced a new customer again yesterday, one of the biggest in the IT sector, and the share leaped. Imagine what will happen when people learn that Silicom’s customers are companies the size of HP-Hewlett Packard (NYSE: HPQ). The truth is I misled my friends who bought the share a little bit. I stick to a system that says that when you buy 2,000 shares at $0.20 a share, and the share suddenly rises sharply, it’s worthwhile selling 1,000 shares at $4-5 in order to make back the principal of my investment, so that my remaining 1,000 shares will have been acquired “for free”. I ask just one thing of you, dear readers don’t jump on the bandwagon now without examining why you jump. That way, you won’t break an arm or a leg.

http://www.globes.co.il/serveen/globes/docview.asp?did=1000034277&fid=1052

Dubi