Apple, I share your pain and your disappointments with this company. I was thinking they should have one bad quarter - the last one, then things should turn around. Now it seems they are going to have several bad quarters, with the next being the worst, and hopefully, the next next quarter will be better although under utilisation of their capacity problem might continue until 1999. Until then, their profit margin will be low and there is very little power for earnings. However, I still keep thinking the huge market share (100% currently) is going to eventually do them something good on the bottom line. What we have seen here right now may be the most difficult times in the history of their company - inventory correction, sales slump, margin shrinkage. But over a long time, these things will improve. You are one of the long bulls who stayed with Cymi for a very long time. I know it's frustrating sometimes, to me too. We can't rule out the possibility of this stock going back to teens especially giving the weakness of the genral market. But the most likely scenerio, in my view, is to go to the middle $30s by the end of this year.
Take care. |
