David and Raefon......There is something true here, that I have not appreciated adequately in the past. This is the fact that TFS has no pricing power.....not just to set prices in the beginning, but to protect pricing in mid-contract. We have no power. The customers have the power on the commodity products.....or on those where the Korean LCD makers can be substituted.
It is only on the high-margin products, where there is no commodity competition, that we can hold pricing. I think the Siliscape products fall into this category, due to the optics patents. The desired form factor will protect the rest of the display. LCaD has Korean competition, I think. LCiD does not, so far as I know.
I think the only way to own this stock, as long as we compete with the Koreans in the current currency and financial environment, and are hostage to MOT, is to buy it at moments like this, ONLY, and at no other time. Then, just hold it, and wait until there is another problem; then buy it and wait, etc. That also means ignoring the company most of the time. All tough to do, and not the way I would prefer to invest.
What a day. |
