Lindsey, I too wonder about this...but, I follow the industry pretty closely and don't think that OAKT is about to go into bankruptcy, that its about to lose its hold on the CDROM controller market or that they'll completely fritter away all those $ they have in cash/investments. I have bought quite a few stocks the past couple of years that had very high amounts of cash/share and were profitable(not neccesarily hugely profitable). In all cases(AALR, VIEW, STK) the downside was very limited and any sort of positive development resulted in big movement upward. OAKT does have outstanding engineering/product development capabilities and they have alot of irons in the fire(DVD, 3D, etc) that could turn their fortunes around. The stock is sharply played by insiders, so there are risks when it goes up and I've bought twice in the 6-8 range and sold 12-14. I agree with the notion that it won't do much until Jan, but, for the sake of an 1/8 or a 1/4 I won't wait too long to pull the trigger again.
One last thought, I think that the stock is a little oversold due to the Asia stuff. OAKT says that 90% of its sales go to customers in the Far East. On the surface this sounds very scary, and may have triggered the latest declines. However, those chips are being sold to Asian CDROM mfg. and very large numbers of them end up in PC's sold here, Europe, etc. Plus, with the decline in Asian currencies it will make those CDROM drives even more price competitive... |
