[Analyst coverage]
I should have done more research before posting. At any rate, I phoned Pacific International Securities, a Vancouver firm, and talked to the analyst who said his report is a couple years old and hasn't been officially updated in some time --- just interim updates as customers demand. There are also strict rules governing solicitating customers across borders, so there's no way to get research if you're a US citizen. Of course, most analysts here in the US won't give you their research, anyway, so I'm used to it.
Okay, I asked a lot of questions and got the feeling he still likes the company and isn't overly concerned with the Loughborough Sound Imaging distribution change. The agreement used to be an exclusive for North America and is now a non-exclusive world-wide. While Loughborough could now undercut SSPIF in price, Spectrum has repositioned itself to be 75% independent of their business. Its strength is in R&D and in being the first to release product based on TI's C6X. I asked if any hold-up in the C6X would affect the company and he said, no, b/c if this happened, they would use another company's chips in the interim. I suspect much the same as Amati uses LSI's.
He thinks the stock is cheap relative to its competitors. Penn Merchant, a firm in PA, also covers the company and may know more about the competition, especially Ariel, whom they cover.
While I didn't learn anything I didn't already know, I didn't uncover anything negative, either. No skeletons in the closet yet. :)
Later --
Pat |
