To all:
For what it's worth, I just briefly talked to a gentleperson to try and get some "inside" scoop. This person is also an S3 stockholder and has the following to say about the company:
* Company has grown so fast in the past year, that they may be experiencing some "growing pains".
* Company is having an extremely tough time keeping up with ViRGE demand.
* SonicVibes might become the next best thing since sliced bread.
* Market is sooo tough and competitive right now that "it woudn't surprise me if the stock was trading at $12 tomorrow or at $25 tomorrow".
On another note, one of my friends, who happens to be very technical in the semiconductor arena, attended a "Fabless Semiconductor" conference recently and he mentioned that unlike other engineers from other companies, he was extremely impressed with the engineers S3 had sent to this conference. In other words, his hunch is that S3 seemed to have assembled an extremely good engineering team.
So just like most of you, the behavior of this stock has frustrated me immensely. So why am I still holding on?
1) Numbers are being met.
2) From whatever homework I've done, they seem to have a great management team assembled.
3) From whatever homework I've done, they seem to have assembled a good/great engineering team.
4) Stock, in my opinion, is undervalued.
5) So far, their entire team (marketing, sales, engineering, etc.) seem to have executed and executed well... what makes you think that they won't be able to execute tomorrow?
6) Management realizes that this industry is extremely competitive and things change sooo rapidly -- this tells me that they won't be sitting on their laurels -- atleast I hope not.
7) They are in a leadership position.
I think the bottom line for me and this company is that this is one of the few times in my trading history that I've decided to "invest in the company and not the stock" (Warren Buffet?). But, of course, I won't lie to you and say that if this stock were to hit $40 tomorrow, I'll probably dump most, if not all of my shares...
The action of this stock price reminds me of a quote I heard from Lou Holtz (on TV) "You can't kick someone in the ass unless they are in front of you"...
Take care and good luck to all -- long or short.
- praveen
p.s. I can't/shouldn't reveal my sources and every thing they tell me, I take as opinions and nothing more than that -- could be right, could be wrong. |
