John,
Comments:
#1: You missed the Rational Analyst thread by a bit. We're on Charts for Quick CASH $$$ (laughing). I'm trying to lighten the mood a bit :o)
#2: QSound was extremely disappointing today, yes. While I think the improvements would be nice, it increases the risk of Starkey falling behind. Like the link I provided on QSound says, it's not necessarily having the best product out--it's just getting there first!
The new chart developments are negative: the intermediate term trend was broken, and the rollout delay makes this pretty much an unattractive hold for significant upside earnings purposes. Don't forget though that there still remains the VLSI/QSNDF Thunderbird sound card, which can still drive revs for this company, though only at a fraction of the impact the Cetera would have been expected to contribute.
The downside risk? There's lots of support at this level, but if the issues drifts, as I think it will, there will be a gradual decline of shareholder loyalty that can bring this down to...(I don't even want to say) the low 2's perhaps.
For now, there is a downtrend that the stock needs to deal with. Until that is broken (which is moving down at the rate of $0.50 every 4 months), this is not one to hold. That downtrend can stay from as short as 4 months to as long as 8 to 9 months.
I guess only time will tell.
By the way, it's good to see you here at the night-time chatting with the rest of us.
Regards,
Rainier |
