STEC Inc. (NDQ: STEC)
Originally recommended on April 20/09 (IWB #2915) at $8.22. Closed Friday at $32.59. (All figures in U.S. dollars.)
When I updated this stock in May it had risen 71% in a month and I advised readers to take half-profits. It has since jumped another 131% for a total return of almost 300% over the original recommended price of $8.22. It closed Friday at $32.59.
At this level, the price is getting way too rich for my liking. Yes, it's a terrific company but I don't see a lot more short-term upside and there is a risk that profit-taking and/or a major correction will cause it to pull back.
Personally, I sold at $18 which was clearly too soon. But now I think it's definitely time to ring the register and book some profits, as an insider did last week when a board member sold $2 million worth of shares. Insiders buy stock for lots of reasons but unless they're cash-strapped they usually sell for one reason only: they think the price is going to fall.
This is been a great run in a tough market and is certainly possible we could wake up and find this one at $40 but let's not be greedy.
Action now: Sell for a gain of 296.4% in three months.