Yes, I am nervous about earnings this quarter. Did you see the range of estimates? From .05 to .23! That means Wall St. has not a clue about this company and its prospects. It is scary (for a crus bull) that every company involved in any aspect of disk-drives has gone to all-time highs in past 2 months (SEG, INVX, DELL, CPQ, Hutchinson, QNTM, etc) with the notable exception of CRUS, which makes the storage chips. This shows that even when PC/disk drive market is doing well, Wall street won't park its money in CRUS. When the PC market tanks, though, CRUS will tumble like the rest.
Last quarter, they tried to hoodwink Wall St. by including division sales proceeds to make the subpar earnings look good. Might they do it again? I think that if they do not make .15 this quarter, they will get a 50% haircut in stock price the following day. From 15 to 8. Wall Street will no longer tolerate laggards (just look at recent activity in IMPX, GVIL, TSNG, etc, selling in the 3's! |
