Tim, nothing wrong with taking well earned profits, and indeed a break of the $30 or so may cause VLNC to test the $25, now the major support. If $25 breaks, it will mean that things are not going according to plan, and I think all of us will have an opportunity to get some stuff in the mid teens. The markets look ugly, but on the bright side, I doubt we have more than another 400 DOW points before we turn up again, so we may be at the end of this correction soon.
As for RMBS, it is the anticipation of lower costs and higher market share for RDRAM that will fuel the price, it will discount (in the current environment) earnings well into three years down the road. Look at VLNC, it has a market cap in excess of a billion, but nothing yet to show for it, just the hope that Murphy will not appear on the scene. RMBS has much more to offer as far as promises than VLNC, don't you think?
I am still in VLNC we a SL just under $30 on a closing basis, but I think it will not happen, on the other hand, if the SH meeting does notcreate the pop I expect, I may bail out and wait for better prices, long term it could still double from here, IMHO. ULBI just made another sprint today, and could retrace to the breakout price ($12.25 or so) and trade in the range before the real reason for the move becomes apparent. Anyone has a guess as to why ULBI made a new high when the rest of the market was suffering?
Zeev |
