Keith, On Jun 12, #1147 you wrote:
< I doubt this company would ever be a takeover. Poorly managed, inconsistent growth, management refuse to speak to shareholders, they prefer only answering to market makers and analysts, providing them with all the inside information necessary so that they won't get hurt, while the average guy gets hit with huge losses. This is one stock to avoid.
>
First of all, I noticed that shortly after you wrote that note, ALSC started dramatic upward move that send the stock price almost doubled in about a month. Does that hint that shortly after your latest note, ALSC is gonna have another dramatic run? I think so! In fact, my feeling is that ALSC will finish back above $10 next week-end if the stock market overcomes the recent setback.
Secondly, your comments about the company's management is baseless, with no supporting facts. You said the company has inconsistent growth. The fact is that the DRAM price has reduced so much that not only ALSC, but all the DRAM-business involved companies are suffered. You said that the company is poorly managed. Don't know where you came this conclusion from? Apparently not a single analyst has the same view as what you have. In fact, the analysts have reported that the company is drastically changing its product mix and has determined to turn the business around. To me it showed a great management. If you go to SIII thread and read most of their posts, you would find out what you called a poor management looks like.
Now this message to rest of us:
Don't be disturbed by the short term volatility. If you have been in the stock market long enough, you've seen this happened all the time. My rule is, when I see my stock's price drops, I try to find the reason behind it. If it is caused by the company's fundamental problem, than I will get out. But if it is caused by the market turmoil, or other short term issue (such as DRAM price decline), then I will use the opportunity to drastically increase my holdings. It is through this approach, I have been quite profitable in trading some stocks, including ALSC.
So, I think all the worst that could happen has happened. Don't you see the DRAM price has stabilized in the last week? Don't you see Hong Kong market has started rebound? Don't you see ALSC has attracted a lot of buying at low $8 (including myself) and finished higher? Don't you see ALSC has hired a very experienced sales VP to lead the company expanding sales globally? Plus the good Dec backlog, plus the bigger USC contribution, plus the traditionally good Dec qtr PC market, plus the traditionally good Dec qtr stock market, can you NOT imagine that ALSC will go back to $11 - $12 by the end of year?!
Com'on, be happy and don't worry!
Good luck to us all!
MB |
