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Politics : RAMTRONIAN's Cache Inn
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To: Tom Caruthers who wrote (14219)10/4/2008 2:19:17 PM
From: NightOwl   of 14464
 
Well Mr. Caruthers, I've been thinking about your comments and while I agree that the bottom is not about to drop out of RMTR's markets, and the insurance claim is probably "doable," I suspect the stock market is considering previous "surprises" which had a negative effect on buyers.

Based on what they have disclosed it's quite possible that the liability for the defective FRAM is not RMTR's and the insurance will not provide coverage. If so I would expect that RMTR will at least act to keep the customer "happy." If so, I would expect that cost could range between $250K and $500K.

But a payment of $750K on top of the cost of replacing the bad FRAM as Collins is seems to be estimating sounds a little excessive for "customer happiness" to me. But I can see why Collins would be conservative even if they were honest analysts... which I will never believe. The larger uncertainty for me, despite the expected market/revenue growth, is probably the history of prior "surprises" which put limits on past earnings.

If memory serves, since 2003(?) we've had (1) the failed $150-300 ESRAM development project; (2) the Mushkin sale; (3) the EDRAM IP sale; (4) the MCU IP purchase; (5) the stock options; and (6-7) two product glitches. This management always seems to find a way to limit present earnings below that which an investor might reasonably expect.

Frankly... I believe this is simply a failed conspiracy to force me back into church. But its been 5 years... one would think that rational people would have given up by now! <vLg>

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