Is there a stock in your portfolio that's gotten hammered over the past few weeks? If so, you're not alone. Fool.com analyst Eric Bleeker has watched as one his favorites, NVIDIA
The curious thing is-- and maybe this is true of your tumbler, too -- NVIDIA took a dive right after it released a pretty darn solid earnings report. It was a familiar story: the company beat its revenue and earnings estimates, but Wall Street was spooked by "poor guidance" and issued a thumbs-down rating that sent NVIDIA reeling by 30%. Such is life in an uncertain market: If a company refuses to claim that its future holds nothing but cloudless blue skies, it's labeled a loser.
Well, in spite of his stock's nose-dive, Bleeker had cause to celebrate. That's because he's betting on NVIDIA for the long term, and a price drop simply means he can scoop up more shares at a discount. NVIDIA is the maker of graphics cards for computers, and it produces a large collection of complimentary chips as well. As a result, the company is competitively well positioned and maintains a broad base in the computing industry. What's more, executives are focused on long-term trends and possess a solid plan to introduce new, high-margin technologies across a multi-year span -- maximizing long-term value even if that means sacrificing short-term profits.
Wall Street, ever myopic, may not like the sound of that, but it ought to be sweet music to the ears of buy-to-hold shareholders.
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