||Can Cohodes make the Funds Sell||
Here is the history of his attempts.
Marc Cohodes and his struggle to get funds to Sell ESST. Interesting history. Classic Wall St.
1. Shorts got in because of bad CEA Data, and said that is why they are shorting in WSJ Apr 30 article. DVD growth is finished, they claimed. CEA corrected the data, shorts were wrong. Shorts refuse to talk about CEA Data anymore, but the corrected data and the WSJ article are recorded in print.
messages.yahoo.com (read the WSJ articles)
2. Then they used CFRA to write a report suggesting ESST was being deceitful and was hiding R&D costs, and earnings would be lower if they told the truth. ESST came back with a strong rebuttal. That claim too is not made by shorts anymore, that was just another ploy – why did Marc Cohodes not have the guts to allege that at the CC or in Barron’s? Because it was another game that did not work.
3. Then came Fulcrum suggesting: that instead of the 10-15% ASP erosion over the course of the year it may be 15-25%. [ fulcrumpg.com “Fulcrum Global Partners LLC is a securities firm serving the research and trade execution needs of hedge funds…”] Note that 15-25% was Fulcrum’s claim, and they wanted to hurt ESST stock all they could. With ESST’s growth rate and PE even this scenario would not be that terrible. Look at the rest of tech and ESST’s PEG.
4. Then Marc Cohodes shows up rabid on the Conference Call (CC), and makes outrageous claims about ASP erosion (it is going to be 50% he screamed) and suggested Apex has not paid ESST and Apex has liquidity problems. He challenged CEO Blair to state how much Apex owed ESST, Blair answered $0. Today in Barron’s Cohodes treats Apex with great respect saying that ESST lost some share in Apex business. Hold on, in the CC a few days ago Cohodes said Apex was crap and their business meant nothing because they won’t pay for the chips. Can this man ever stop Lying and Flip-flopping? “Lying for a living,” what a job! And when one lie fails, (CEA data and DVD growth finished, Fake Earnings) u find another one. Okay says Cohodes, the new lie about Apex not paying ESST did not work because the CEO pointed out the facts; but the ASP erosion is a lie about the future, let us run with that because the future has not happened and it cannot be proved to be lie. All in a day’s work.
5. Only ESST and ZRAN have chips with the basic Progressive-scan feature, now becoming standard on DVD-players. They far lead the way in DVD-R chips research (everyone changed from VCP to VCR, R=Recorder). In 1995 shorts said VIA and others were going to take over PC chips because of great growth there. Did not happen. Oh u are making great money, well the competition is going to get u! By that logic, sell all companies that have great growth.
6. djindexes.com (Merrill and others two days ago put ESST as the third-largest long and balanced it by shorting other tech in their “Long-Short Technology TRAKRS Index”). Must have been scary for Cohodes.
7. I think Cohodes wants to check out now. I posted this yesterday:
>Interesting part is that Fulcrum set $12 price-target (http://biz.yahoo.com/z/a/e/esst.html). Now what? Time to cover? One more stunt?< It was one more stunt, the checkout stunt.
8. thestreet.com “Stocks can lose value in a minute when hedge funds circulate negative rumors about companies. Yes, they do that.” “The goal is, ultimately, to panic the mutual funds.”
9. Mutual funds have not only not sold ESST but have bought more, see 6/30 data on NASDAQ site for example. nasdaq.com`&selected=ESST&FormType=Institutional (click on the Date button to arrange by date and see 6/30 filings). Again, will Cohode and his lies finally panic the mutual funds? We will find out. I am sitting tight on my January Calls
10. And let us check out recent earnings report (Or does pathological liar Cohodes [proof above] get to re-write earnings?)
biz.yahoo.com
ESS Technology Reports Second Quarter Results
Gross margin for the second quarter of 2002 was 41%, up from 29% for the second quarter of 2001 and down from 43% for the first quarter of 2002. [Dramtically up year-over-year, no?]
Robert L. Blair, president and chief executive officer commented, "overall revenue growth of 8.7% sequentially during this normally slow quarter. In addition, ESS expanded geographically with several new design wins from Japan and Korea and we believe we continued to increase our worldwide DVD market share."
During the quarter we grew VCD revenue, improved margins, and increased our share of the VCD market -- all in the face of strong competition.
"We believe we will maintain our leadership position in the areas of new products, features and services through the introduction of our Vibratto II product, an integrated DVD system-on-a-chip, our new Visba3 integrated VCD chip, and our ESS 7010 encoder chip for a sub-$300 priced recordable DVR/DVD, all of which are scheduled for production shipments in the fourth quarter of 2002. With these new product introductions, we believe we can continue to lead the high growth market for digital home entertainment products," Mr. Blair concluded.
We expect to grow our DVD unit shipment by 10%-15% in the third quarter of 2002 compared to the second quarter.
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Also check out this interesting post
messages.yahoo.com |
