Taking a financial punch from a disappointing earnings report (or for no good reason at all) hurts emotionally, as we don’t like to see any of our positions backslide. Limelight Networks (LLNW) and GrowGeneration (GRWG) are two such examples where over the past year Limelight dropped beyond 50%, and in the last three months GrowGeneration dipped 43%. It’s painful to see such large sell offs, but it also indicates that we may have hit the floor as Limelight is up 12% in the last week (and still is puny with a $377M market cap) and GrowGeneration appears to have stabilized with signs that it’s ready to head back north.
While it’s never advised to attempt timing the overall market, you can use your instincts when individual securities have been so thoroughly beaten up that they enter the realm of value play. Deploy the dry powder early.
Limelight Networks (LLNW) $377M
GrowGeneration (GRWG) $1.3B
“Opportunity is a haughty goddess who wastes no time with those who are unprepared.” –George Clason