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Technology Stocks : IXYS Corp. (SYXI)

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To: The Ox who wrote (76)11/12/2007 10:58:58 AM
From: kinkblot  Read Replies (1) of 87
 
I bought back in on Friday.

I didn't expect the stock to revisit these levels, but here it is...

It puzzles me that management, with a significant stake in the company, is content to watch the stock bounce around for years in a trading range.

Quoting from the earnings release, their product line includes "unique power semiconductors" but they experienced growth from "products with lower margins." They should be striving for growth from the unique products, which will command higher margins; if they are not getting the expected growth they should reassess their target markets. If their goal is to "seek out higher margin business" they must determine why the product balance has shifted in the other direction. Perhaps the strategy of cross selling is not the best marketing strategy for the new products?
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