<<therefore demand for flash is great and IMO will continue to be for several years (not just months).>>
Exactly. In their pre-announcement, they flat out told us they were at full capacity thru 2001. In fact, they said demand was so good, future revenue could be HURT, if they dont figure out a way to increase capacity to handle the demand they have for their products. Coincidentally, while sitting on a nice cash balance, they essentially borrowed more. Why? I think it is obvious. For expansion of existing operations and possible aquisitions. Why does a company with a positive 150million in cash, borrow more while their demand is going thru the roof??? I dont think it's cause the ceo needs a few new mercedes sitting in his garage. I think SSTI has big plans and a bright future.
Additionally, if you look at the two big boys that just threw some money at ssti, I believe...and somebody correct me if I am wrong......they were issued warrants, that can not be excersised for a period of time, and the excersise price is $30.....if this is correct, they are pretty sure SSTI will be higher then $30...no guarantee's of course, but at least thats what thinking is. Anybody else wish to expand on this point??
In closing, I have a nice position and calls. I certainly would like to see us back up at the $28 - $30 range, so if and when the naz does turn, we can maybe get into the $40's and $50's...but alas, I am getting way ahead of myself...in this ugly market, we may very well see $10 befor we see $30..... |
