*OFF TOPIC*
ACCL looks interesting, but it is in a tough business. It has several competitors, many of which are much larger. As a result, ACCL is subject to intense price competition with other graphics cards suppliers. In addition, ACCL works largely through OEMs, which pay less per unit than would end users. As a result, gross margins are low (26% in the most recent quarter). When you add in 13% R&D and 15% SG&A, there isn't much room for profit. Unless ACCL's sales ramp up significantly, and its new relationships provide higher average selling prices, and it can reduce its overhead expenses, it's going to have a tough time sustaining profitability.
Among tech companies, I generally like to look for those with a market leadership position, technological leadership/innovation, high gross margins, stable or declining cost structure, reliable and growing revenues. ACCL isn't there yet, but it does look very cheap. If it can achieve the street estimates for the next year or two, the stock should perform very well.
LUFK will report Q4 results on 2/18. I'm expecting .80.
Todd |
