[Too long?]
According to my wife, I have been in this too long. I can't help but to wonder what happened with AMTX. They seem to have been just consumed in TXN. I looked at TXN website the other day regarding AMTX and they are no longer selling product (i.e. Allegro), just support. Hopefully, WSTL will benefit from new TXN chips and discount, if memory serves. If Lucent does not come through BIG, I think WSTL should try and sell off ADSL business. Steve S. was right on the money on ORCTF. They seem to have a plan and execute it. It remains to be seen as to silicon availability in Jan 99. In fact, I had an interesting thought last night. Consider the following scenario:
ORCTF signs agreement to supply minimum number of modems to GTE at rock bottom forward pricing. Margins expected to improve with new plastic casings and new silicon. Every new shipment loses money! If I were managing for ORCTF, I would ship the minimum number of modems to meet GTE expectations and move up the manufacturing learning curve. Once silicon is ready, ship like gangbusters!
This thought just sparked from the rumors of GTE not being entirely happy with ORCTF but, no evidence of substance. Also, the fact that I got the impression that WSTL was shipping more product than they expected to and were surprised! Why lose more money than you have to?? They should think more strategically! If I could go buy Intel at a 30% discount (as much as I wanted) and knew with certainty it would go up another 50%, would I mortgage the house to buy it?? OF COURSE. Pity the sucker who would sell it to me.
Decent volume in ORCTF today, maybe AWARE traders taking profit and playing the rest of the sector?
MB |
