I like what I see on the intraday trading so far. Most of the impact of the announcement had been priced in already, but at the same time if there had been any shorts around, it would appear their sells had been absorbed. If anyone recalls what had happened after the IBM announcement: the stock plummeted immediately (1-2hours) after the announcement, clearly a different scenario from today. Perhaps still holding out for news of the press conference?
Anyway I am glad we did not have a spectacular rise today - it would be artificial and given the shorts lots to aim at. New investors drawn in to this share now by this exposore, will do it slowly. Remember that this is a fairly technical announcement, with its true significance not immediately apparent to people not familiar with the stock. I bet Standard Microsystems investors are probably only now putting on their bifocals to peer down at this little insect called Wave that will from now on be part of the furniture.
To longtermers on this board the potential of the company appears crystal clear, but I can still remember having to think through it a bit before I really understood not only the technical aspects of the chip, but how it could easily forge a monopoly in metering. I can easily see how investors at a glance can think: " one product stock"!, and not thinking it through, realizing: "..., but WHAT a VERSATILE product. eg Microsoft can be termed a one product stock!
Also the public at large have heard so much about digital TV, pay per use, satellite Internet etc, that most are blissfully unaware the enabling technologies are being put together under their very noses.
Star date 28/5/1998 18:50 GMT: Steady as she goes!
Greetings,
Paul |
