Thurston,
chip and component pricing is not a short lived factor.
this is because all foundaries have their chips allocated
for the next 4 months, that means every chip being made
is already sold! that fact, coupled with the projected
PC demand growth for the 1st quarter of 2000 by corporate
buyers, and a renewed upgrade cycle inspired by PC133
based machines, and P3 notebooks, will squeeze whatever
limited production is allocated to the limit. I doubt
CPU will see much positive growth in sales or revenues
for the next 6 months. People who buy this historically
cheap stock, thinking it will do well going into the Xmas
cycle are deceiving themselves. I'm am not short this
stock as only a fool should short a $5 stock. With 10%
of CPU shares still in short positions, this stock will
go up more from short covering than on it's own merits.
Keep in mind that as this stock goes below $5, many long
positions will be closed from margin calls, while the
shorts will stay short. If you have not made a position
in this stock yet, then you should consider another idea.
Those idiots on Yahoo hyping CPU to $20 are probably just
stuck with shares they got in the teens and are desperate
to get out after averaging down so many times. |
