Rodney, the quarter-to-quarter growth is referred to as "revenue", not earnings. As Cymi is concentrating on bringing up capacity and increasing field service, the head counts will increase drastically. At the same time, training related spending, capital related spending (expense part), and reserve for previous model change-out, etc will continue to eat margin in the near term. Over a long term, however, margin should drastically improve.
Near term Cymi has reasons to be weak (Hilight the "S" of reasons). But what we are talking about here, at least IMO, is long term. This is another reason that the stock is not a good candiate for day traders. But for people who can wait for >3~6 months or even longer, I personally believe it's a good buy.
Back in early 1996, I thought Best Buy (BBY) was going to go bankruptcy, their stock dropped from $20 ~ $30 to $9. See where is best buy now ? ($37 today). Stocks just over shoot in both ways. IMO, if we have patience, it will be rewarded.
Good luck to each and alll,
Cymeed |
