I read an article today discussing a resurgance in the computer market, and that it will trickle down throughout the industry. In fact, we may be witness to the beginning of this wave. Consider that SMTC furnishes components required to be incorporated at the very beginning of manufacturing a system (motherboard level). While I am not sure of the actual sequence, it is likely that a system board sees SMTC LDO's and/or other devices well before the CPU is installed. That means the recent price increase may be a result of revenue generated to support the expected wave.
It also mentioned that monitoring the price of DRAM in New Zealand is an excellent way to judge this segment of the market. The conclusion was that since NEw Zealand has no internal means of manufacturing DRAM, and since it is the most frequent dumping grounds for excess Korean memory, prices there are a very good indicator of current memory inventory levels. Since memory prices in New Zealand have quickly jumped up, it is being suggested that excess memory inventory may be a thing of the past.
This is a long-term benefit to SMTC, and may help explain why there has been a resurgance in the price of the stock. If the wave to purchase new computers has indeed begun in earnest, it will eventually set in motion a whole new cycle of further advances for high-tech companies.
I have a question. I think broadband is the winner in the long run. I see CDMA winning over TDMA in digital cellular technology, the Europeans have decided to incorporate CDMA technology into their universal standard for the continent, I feel broadband promises to eliminate as much dependency on switching equipment, as it allows volumes of data to stream over fibre in massive quantities, available on-demand at some point.
I think the power necessary to put all this technology into place is critical to it's success. I have been trying to figure out exactly what is going to happen, and have come across some early names in Uniphase, Spectrian, and Microwave Power Devices. Can anyone help by tossing in their thoughts on the matter, anything is appreciated. I know SMTC is involved in fibre via Acapella, but any knowledge if their products are incorporated into high grade power supplies, or similar products. Thanks :o)
Regards, JB |
