Gino,
As I stated in an earlier post, I too believe the supply problems can be fixed, although how quickly depends on exactly where the supply problem is. In one of my posts I mentioned a similar problem at a company called Chips and Technologies. It took them about a year and a half to convince Wall Street that the problems had been fixed, but the pay off was worth the wait.
I also believe that costs can be cut, how well depends on management. I think their management team is strong but very technologically oriented. If they bring in a CEO with a bit more business experience, I think cost cutting will go a little better.
There were only two words in the release that really worried me, and they were "soft demand." I'm curious why demand was so soft, especially when all I'm hearing is how great their products are.
And as for the low, I would hope it is 9. However, there really is no way to know. In short, I wouldn't start throwing money at this stock right now. I suspect it might bounce a little today, and then kind of wander aimlessly until the new CEO is named. That should be the next indicator of where this company is headed.
Good luck,
brother |
