hey tim :o)
sounds like a good move to me. i remember a while back, when foundry services were at dirt cheap levels, smtc took advantage of the opportunity and secured plenty of possibilities for outsourcing this part of the business.
i had asked the company at the time about this issue, since i was curious if smtc might have been limited in terms of potential business based on limited foundry capacity. turns out that was not an issue, and business would simply be limited by demand rather than a supply crunch.
this announcement seems to confirm that was a true statement. fewer facilities means less overhead, and easier management of the business. this seems like a move directed to achieve higher gross margins as stated in the earnings press release.
speaking of the release, i was BLOWN AWAY with the contents. many more good things are in store for the company, and each time a downturn hits, they seem to come out better than the competition.
i entered a silly stock picking contest at a website, and smtc was one of my buys. my portfolio is #6 right now, which is pretty funny when i think about it.
accumulate is my personal opinion, the company is buying back shares, and i don't think its going to get much lower than $20 again, if it even makes it that far.
by the way, i'm pretty bearish at the moment, i think there is plenty more potential for trouble before there is good times.
i think about a year out, when year to year comparisons with current numbers translate into good earnings growth (as a percentage to prior year numbers) is when we might get some better price appreciation. that would make late summer a good time to buy, if this turns out to be the case.
take it easy tim, best to you :o)
regards, jb |
