Stitch,
You misunderstand
I realize the technical skills that Komag and Readrite have developed and I realize that they are transferable to fiber optics.
Your calls on Readrite and Komag are well founded, prescient, and darn good information for the short term high risk investor (these are tiny companies, after all)
Does it not bother you though, not as an investor but as one intimate with the industry that 4 qualification announcements for Readrite was worth about 50 million in market cap whereas a highly speculative (IMO) venture into a new business with a mere 30 million or so investment was worth $200 + million in market cap.
Indeed, Komag is getting its act together and should be looked at for that reason but all the buzz is about some new venture (I've heard speculation on optical but that's just trader talk not anything more)-- not the fundamental strength of their core business.
If they don't announce something new, traders will take them down.
I am just beginning to wonder if CEOs and BODs are in control of their corporations' direction or if Goldman, Chase, Bank Boston et al are calling the shots with an eye on the short term opportunity rather than the long term development of the company.
I saw the Lehman announcement this morning (see link excerpt below) and, after a couple of loud whoops, was further convinced that we are no longer building markets and helping corporations get established, grow, and prosper--- we are just making deals. Smelling short term opportunities that will look good on a press release and funding it. The market will reward us tomorrow. Who cares if they can really compete long term? We made the deal.
www2.marketwatch.com
<<Investment banks have been able to prosper, despite the fact that both major U.S. stock indexes are down for the year, because stock and bond trading volume remains strong.
In addition, the global investment banking business has picked up steam in 2000, especially in the area of mergers and acquisitions.
On Tuesday, Goldman Sachs Group Inc. served notice that U.S. investment banks weren't suffering under the pressure of weak U.S. markets.
Indeed, Goldman reported third quarter earnings that easily beat Wall Street expectations, primarily due to global profits from underwriting initial public stock offerings and its advisory role in mergers and acquisitions.>>
It's the age of the deal and short term return time horizons... has been for quite awhile and I've become very comfortable participating, but every once in a while it bugs me.
Sometimes it bothers the street, too Q 3/4 '98: finance.yahoo.com
Sorry.
Paul |
