Here's a hedge idea. Go long on ATML and short VTSS. The former is near an all time low; the latter is near an all time high. The key here is SiGe. VTSS is a leader in GAs, which SiGe may obsolete. ATML has been losing share to VTSS, but now has acquired SiGe technology, and could leap frog VTSS.
Proposition #1: The market in tech stocks goes in the tank, VTSS should be hurt much more than ATML.
Proposition #2: SiGe takes off, which is somewhat in question, if not doubt, and ATML soars.
I'm going to post this also on the Vitesse Semiconductor thread, referencing this HEDGES thread.
This hedge could produce a good return if tech stocks stay hot, and VTSS continues to climb, a better one if ATML rises from the bottom a little bit on the promise of SiGe. This hedge could be a bust only if both tech stocks and SiGe fail.
I'm going to post this also on the Vitesse Semiconductor thread, referencing this HEDGES thread. |
