Hi Tom,
It's been difficult to sit by and watch the stock fall without jumping in. However, VTSS needs to continue to clean house and rebuild it's business model or they need to see a substantial increase in demand. Right now, they need about a 40% improvement in revenues or a similar cut in spending just to be at break even. I have my reservations about buying the stock at this level but if I look out past the next quarter or 2, I believe we will see demand slowly return. My reservations are that the stock will continue to act like it has the plague and that there will be an opportunity to buy at such a ridiculously low price that buying today will look like a huge blunder.
Even with today's "low" prices, I'm still concerned about the street's perception. Here's an example:
biz.yahoo.com
Vitesse Semiconductor tumbled 25 cents, or 13%, to $1.66 on Nasdaq after an analyst at Goldman Sachs suggested business at the company, which makes chips for the fiber-optic communications industry, remains soft. There are also rumors that the stock might be eliminated from the S&P index.
The Vitesse news didn't weigh down the rest of the chip sector. The Philadelphia Stock Exchange semiconductor index climbed 13.42, or 4.4%, to 321.07. Chip giant Intel edged up 66 cents, or 4%, to $18.38 on Nasdaq. The company's chairman, Andy Grove, said the Intel won't expense stock options, but will provide a new level of detail about its options program in its filings. |
