The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider solid-state drive maker STEC
Here at The Motley Fool, we like to consider both the good and bad sides of an investment, so in this article, I'm highlighting three of the main bearish arguments on STEC. Be sure to read the bullish side, as well, and then weigh in with your own comments below or rate STEC in CAPS.
1. Customer concentration
Similar to chip company Rambus
2. Walking with giants
Some investors are concerned about the future of STEC's competitive position, as an increasing number of companies are pushing for market share in the enterprise SSD market, giving companies like Hewlett-Packard and Dell
While the solid-state drive market is expected to become a huge market someday, it has a ways to go before it becomes cost-competitive in mainstream applications. Meanwhile, that gives plenty of time for other players to jockey into the lucrative space, leaving some investors a little uncertain about STEC's dominance. Shares have also gyrated wildly due to issues like EMC's inventory overhang, lawsuits, and even buyout rumors. Some investors prefer to sit on the sidelines.
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Fool contributor Dave Mock votes 3 to be the number of the day. He owns shares of Intel, which is an Inside Value choice. Motley Fool Options has recommended a buy calls position on Intel. The Fool's disclosure policy keeps a can of Silly String handy just in case a little levity is needed.