Somethings just not right here!
John you stated: "I was listening to the call and posted it, I think it was Eli who said it. Post # 15724."
Message 14612329
John, you said in your post, "Supply and demand are moving into balance."
You did not say that came from the conference call or Eli. When I read it, it appeared to me to be just your opinion. In fact limtex asked you where that statement came from and you never answered.
I spent a couple of hours looking back at the company press releases, the conference call notes and the 10 Q's for quarter 2 and 3 as well as 4. Here is what does not make sense to me.
In the CC for the second quarter ending in June, Eli stated that SNDK was backlogged into Q1 2001. And that SNDK was allocating supply to the top 30 customers because they couldn't make enough for all new customers. And that demand was more than double capacity. Mother Merrill even made a 'buy' recommendation based on this, and so stated again what I just said.
Now checking the all the CC notes I could find and the 10Q for the 3rd quarter, I could find ABSOLUTELY nothing from SNDK or Eli to indicate this had changed!
In fact even in the 4th quarter earnings report the company stated that: ``Market conditions softened significantly in the fourth quarter due to slowing economic conditions. Product demand slowed, resulting in reduced backlog and low near-term order visibility. Our sales through the retail channel increased substantially in the fourth quarter, spurred by successful holiday sales of digital cameras. "
To me reduced backlog means that they are still selling everything they are making, but there are fewer orders for the FUTURE So why should 4th quarter revenues be reduced because customers decided to reduce future orders??????????????
Help me out here. I'm no financial genius, but I understand inventory, revenues, backorders and capacity. This just is not adding up.
With all the smarts on this thread, somebody put all the pieces together, because to me it just doesn't fly.
Steve 667
crushed by really big elephants. |
