John, to be honest, I gave in and bought 500 more at the opening Friday, after I said I wouldn't pay more than 12 (My last previous buy was at 11 1/8). The chart action was just turning too positive to resist. At the time, the new upgrade was unknown, but it appears someone knew about it, as there was strength in LTXX that the rest of the market wasn't enjoying...
Next question... No, for the moment, I don't see LTXX retracing to 12..not unless it were to join the entire market in a downturn. (which I don't see). To some extent,however, we are running a little in the dark as regards current operations... But,on the other hand, we do know about that VERY positive recommendation that you turned up before -- which stated that the order backlog was full through Oct... now we get another upgrade. That tells me that "somebody" is staying in touch with current operations, and they are very positve. On balance, my thought is that the risk/reward ration is decidedly in our favor.
Another point: slightly longer term, the complexity of the silicon is becoming a potentially very large problem for the fabs -- they have to move product, and they can't move product which they can't verify. As I understand the testing situation, LTXX has a significant step ahead of the crowd with it's Fusion. With visions of sugar plums dancing in my head, I see LTXX holding the currrent advantage for 6 months to a year.....a time frame which will allow them to get with customers and upgrade to a new gen Fusion within 18 months to 2 years, just in time to catch the bulk of the move to .13 micron design widths.. If they can hold any significant part of their current advantage, building on present strengths, we could have something like a 3-year run of great performance out of LTXX... At least that's the hope..
tso |
