Thread,
Having a terrible time getting SI to load.
IMO- Late last Friday the 8.875 seller quit or decided to seek a higher price. I believe it was a MM, possibly the one that was buying at 6.00. Anyway, near the close Friday we broke the 8.875 barrier. This morning I saw a 5K bid of 9.00 against a 1K of 9.125 and felt we were in for a big day. (I did buy the 1st 1K @9.125 and had an order in for more that never got filled.) Had to be out most of the day and it was a pleasant surprise when I checked a little before the close.
I don't believe the company is buying. I could be wrong, but I believe their support would be closer to 8.00. IMO - Deswell is cheap and some buyers have realized it. We will still be bucking the profit taking (Mike's friends), but I feel that 16 is likely short term and another good movement after the earnings report.
I agree with Paul. A conference call after the report could have major benefits. It could prompt the analysts out there that are following Deswell but not making recommendations to listen in. Of course, this could go the wrong way for any of us that intend to add.
Earnings - I don't expect much growth over last year or last Q (.56) and the 3Q probably won't be as good as last years .78, but the 4th Q, even with the holidays, should be much improved. I expect no decrease in dividend below the 80 cents.
I like $27.00, but won't hold my breath. 22 seems more likely. However, when it passes $100M market cap, many small cap and emerging market funds can begin buying.
JMHO,
Ron |
