Don't misquote me. I have not said that this is a buying opportunity,
just that the insider buying is a positive sign -- which you apparently disagree with.
I continue to hold a position that I should have sold in a company
where, in my opinion, neither the Board of Directors nor CEO have done their job for more than 10 years (deliver company performance at least as good as their peers). Until they are gone I will retain a healthy degree of skepticism and probably even after they are gone.
Xicor has taught me an important lesson in technology investing --
if you are a long term "buy and hold" investor don't buy second rate companies no matter how cheap. They are second rate for a reason,
often many reasons, and any improvement is likely as not to be temporary, as was the case here.
Changing management is the only way to try to correct the situation, which has only partially happened here, and isn't always successful.
For example, Xicor is now a tiny company in a big company, resource intensive industry. How do they attract the engineers, staff and money to deliver the goods? I don't know the answer.
On the other hand, if the semiconductor business has a good upturn they might very well get back to modest profitability and perhaps a $5 stock. That is what I see the insider buying saying, at least. But that won't make Xicor a solid company in this industry and a good long term investment. |
