NVLS- This from Fleckenstein's commentary.
grantsinvestor.com ( i think tonight is the last night it is free before he moves to realmoney.)
"Hillbully Belts Jejune Tune Back to the casino now, where we shall tarry awhile at the smoking section of the Sox. Today, the proximate cause for the melee there was that Integrated Device Technology (IDTI) and Novellus (NVLS), a semiconductor equipment maker, both chirped positively last night. Both of these companies had absolutely minuscule improvements in their business, especially when one examines the size of the improvement relative to the market cap, but that did not stop people from getting all excited. Remember that these days, nothing turns up the heat like the semiconductor equipment stocks. What appeared to fan the flames to me as I listened to the call were rather strong hints by Novellus that not this quarter but next quarter, things are going to be a whole lot better. When queried, Novellus's CEO, Rick Hill, really didn't want to comment, preferring instead to basically dangle the carrot and tell people about how things are bumping on the bottom, are going to get better, and all that good stuff. He really insinuated that Q2 would be great.
Genus Novellus, Species Insider Sellus The fact that you have a company with current revenues of about $600 million against a market capitalization of about $6.6 billion and the company is losing money is completely ignored by people in the misguided belief that somehow, the "great" news about the future makes it a bargain. It's a free world and people are welcome to believe what they want to believe, but if things are so great, how come the very same Rick Hill just sold 237,000 shares? I guess he wanted to make sure that somebody else could get a good price on his stock. I guess he's trying to be charitable. In any case, that's the kind of noise that passes for information, that suckers people into thinking they are investing rather than engaging in what is properly called "speculation." |
