Bulldozer,
Many thanks for the post on the conference call and your in depth analysis.
One of the nice things about PMCS is that this company is positioned at the starting point for the Internet business food chain. PMCS supplies chips to LU, CISC, NT, FORE, ASND, NN, BAY, CS, XYLN, .... (Check the quotes of them, all are gaining substantially), and then in turn, to the telecommunications companies (FON, T, WCOM, ...) and ISPs, and then followed by the front "Internet players", Amazon, YHOO, AOL,...
When the "Internet stocks" like Amazon, AOL, and Yahoo get hyped red hot, and the infrastructure players (LU, CSCO, FORE, XYLN etc.) are having solid gains, the real heroes behind the front players are doing their jobs quietly. Have you noticed how things changed for a 2400 bps modem with hundred parts on the board to a 33.6 kbps modem with only one or two chips on it. All the other parts are integrated into that chip(s). Actually, all the network devices, be it a modem, switch, or router, are experiencing the same evolution by the "semiconductor" companies like PMCS, who is fabless, by the way. In that sense, when people say "network is computer", or "computer is the network", someday, people may say "chips are the network", or vice versa.
Nevertheless, I am surprised, and a little disappointed, too, that there were still so many momentum "investors" who piled on to PMCS before the earning announcement. However, with this recent shaking out, PMCS stock price shall certainly stand on a more solid base. |
