This, after their earnings report came out SIMO dropped by over a third of its total valuation. It was a significantly undervalued stock to begin with, and it’s still a fast growing company. The NAND problems notwithstanding, I see SIMO as a long-term grower. As usual the market has an unreasonably short-term focus. At its current valuation, I couldn’t justify not buying any SIMO stock.

If necessary, I’ll sell some of my stake in BWLD. Buffalo Wild Wings has been executing its expansion well, but its price has also gone up over 50% since in invested earlier this year and the holding has grown to over 20% of my entire portfolio.

Right now, SIMO is trading at a P/E of under 6, and a price/book ratio of under 0.9!

07/31/2008 Bought 175 SIMO @ 7.42

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