Sentiment and Opinions

Seagate Technology Holdings – is the sky falling?

With the advent of various new ways for opinions to be expressed, be they on Twitter, Facebook, or a host of other places where people with opinions gather, it is not surprising that sentiment can drive investments up or down. If you examine stocks like AMC (AMC Entertainment Holdings, Inc.) and GME GameStop you will see euphoria one moment and great dread and distress the next.

Sentiment is a thought, view, or attitude, especially one based mainly on emotion instead of reason. It might be driven by some data, but it is probably a short-term perspective most of the time. It belongs to “the sky is falling” way of thinking, in my opinion.

Seagate Technology Holdings plc Update

In recent posts I have talked about this business more than once. If you bought shares and are now regretting your purchase decision, please don’t make the mistake of short-term thinking. Supply and demand vary over time. While STX certainly merits watching, I am not convinced that the sky is falling. However, as a reminder, just because Wayne owns an investment does not mean you should own it too. Furthermore, I am able to sell covered call options on my STX shares. This additional income, on top of the decent dividend, will more than compensate me during the times STX falls out of favor. YTD, I have received $2,172 in options income from STX and, of course, the very healthy dividends.

Seeking Alpha’s view of STX and the current ratings.
STX Fundamental Analysis from Fidelity Investments
Always consider multiple views and opinions. Don’t make emotional fear or greed-based decisions.

Full Disclosure

I own 1,600 shares of STX and have no plans to sell them. My cost basis is $85.15, so if the shares drop to $80, or so, I will consider buying more. My advice: think like an owner, not like a day-trader. Buy shares slowly so that you can benefit from market fears.