Luc,
Saw your comments on yahoo and i 'd have to say I disagree pretty vehemently. Discreet isn't screwed up as a company, just the stock is screwed up, those are very different issues. Richard's resignation has been coming for a long time. It's something he's wanted, he only came back because discreet was very nearly run into the ground. There's a much stronger management team now and the company has very strong industry perception and product momentum.
The avid/softimage combination is much less powerful than you think. MSFT is taking payment in avid stock, but they are essentially out of the business. Avid doesn't have the margins or growth necessary to invest what's necessary to bring softimage up to speed. Intel has invested in everyone in this business to bring high end visual tools to the merced chipset.
We've spoken to over 30 dslgf dealers and customers in the last two weeks, the feedback is so consistent, it's dull. People love the products, they're moving off the shelves and they plan to buy more. The company needs to work on its visibility in the broadcast industry and especially in the more mid range new media business. I bet the high numbers on the street are met this year and next. I'm not averse to a sell out above $20 right now, but longer term, with the right leadership, this time period could all be a dark memory. No offense meant luc, but this seems like your primary holding, it's very sad, but there are probably hundreds of companies on the nasdaq exchange that have been absolutely destroyed in the last month.
Institutional investors are much less sophisticated than you give them credit for, they're just bailing out of the sector at all costs. They especially don't want holdings like discreet showing up in their portfolio at the end of june. (Window dressing)
It seems an inappropriate time to panic to me. It could certainly go lower in a market like this, I'm not a short term trader, but imo, the long term value remains.
TD |
