Bob, thanks for your quick reply. I found QKTN because I know IKOS. I thought Ikos was a "good long term" hold in the past. But those days, technology change so fast, nothing is long term, nothing is for sure.
I like the dominant market position that QKTN holds; I like the way they have successfully stolen deals from Ikos and keep Ikos away from the emulation business. But I am concerned too.
1). From a technical standard point, Qktn has droped off from a flat base. It is currently trading decisively below the 50-day moving average and right along the 200-day moving average line, which happens to be a down trend line. I see bearish signs at least for the short term.
2). From a fundamental view, QKTN experienced painful order push-out in the past. While with all the Asian problems we all know (hard to get financing for semi expansion etc), would QKTN experience another round of order push out, order delay, or sales slow down ? How much of their revenue is from Asia ?In the midst of all those announcements, is the company trying to hide the weakness in Asia ?
3). When Ikos is sitting in a fighting position, did Qktn ever cut price to squeeze Ikos which would hurt the profit margin ?
I'd appreciate if you or anybody else can help me answer the above questions. I am very interested in Qktn for reasons stated above. Thanks and good luck. |
