I have converted those trading shares to longer term shares.
I have decided to accumulate shares over the next year. My thinking has led me to believe there is a story to unfold, but that it will last only for a few years. InvenSense will lead the MEMS combo market and gain further traction in this area. They should end up offering a 10 degree-of-freedom combo chip with gyros, accelerometers, magnetometers -- and a pressure sensor -- as a final step. After this, they will need to steadily improve the quality of all sensors. This implies lowering the white noise and random walk errors over the next few years. This will be needed to allow improvements in city driving and movements through parking structures as well as indoors. These systems already exist, but they cost from $25K to $100K, and so the needed algorithms already exist. The innovators will need to leverage these lower-quality sensor into existing GNSS systems.
If we see newer markets for these solutions, we can expect an longer uptrend, but if not, we should see a tapering off in, say, five years. I will be looking for any missteps going forward.
FWIW. |
