alan.
appreciate the news. it almost goes with saying that acquisition and consolidation doesn't come without its share of heartburn.
regarding the charges, as long-term investor, i view this as management positioning themselves for the future. this press release exudes vision. SFSK is taking the hit now, but down the road, this move will reduce their production costs/overhead and give them higher margins. we've all heard the footsteps of competition coming to thailand; jaffe, like any shrewd businessman, knows one can't be content with the status quo.
of course, wall street in its chronic myopia, may view the fourth quarter results as a bit tainted and perhaps question the 'quality of earnings'; for this quarter, we may not get the big pop that we've been patiently awaiting.
(on a self-absorbed note, yesterday i reevaluated SFSK, put a lot of weight on jaffe's recent purchase, and decided to take another bite myself. bottom-fishing, i put in a good till cancelled limit order at $21. i had NO idea that the market would open so down today; this morning, i checked my online account and saw my order executed at $20-7/8. certainly a first for a small-time player like me.)
-chris. |
