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Microcap & Penny Stocks : Simtek Corporation

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To: NAG1 who wrote (2567)11/6/2007 8:23:38 PM
From: Crony  Read Replies (1) of 2619
 
There are several variables here.
Tax loss selling is one of them. Margin calls. But I would expect that Crestview to step in and keep the stock from going down. They are trapped in this stock and it is better for them to keep the stock from falling.

Tomorrow HB is going to talk at some conference. I think he should play the 'bright future' card more often now since the current business wouldn't excite anyone.

I don't want to sell at these prices since there is indeed a chance that 4 mbit chip will start contributing in 2008. If they project 20% growth for the existing business (hope they are taking very conservative approach now) and if we are to trust them that the market for 4 mbit chip is much bigger - then 4 mbit might contribute another 10-20% in 2008. One big order for 4 mbit chip might change everything. But I have no idea about probability of getting such order.

But in any case the stock might be at $5 again if they just grow revenues by 20% in 2008 and don't screw up with 4 mbit chip. This is 100% gain and I don't know any other stocks that would give a good chance of making 100% and without much downside risk.

P.S.
Neal, when do you think they might announce any order if they will be able to produce sample chips in only in January. I wouldn't expect any orders until next summer. But what if the current business picks up and they beat estimates and guide higher? You never know.
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