Fred,
Give me a break, I KNOW what the difference is between MU and USRX. And as you can see, I said it was "an extreme example."
The point is, USRX is in a business that is threatened by competition and price wars. IF they ensue, USRX's margins and earnings are going to get killed, and they won't meet expectations. Clearly, the market believes that there is a chance of this happening.
>Please, don't try and speak for all value investors.>
Fred, what I said is pretty common knowledge, and I stand by it. Again, "most value investors tend to avoid high tech stocks." Maybe not you and your friends, but I didn't say "all value investors."
Anyway, as much as USRX fans would love to believe that MU is a commodity company, and USRX isn't....that's simply not the case. The modem business will grow more commoditized over time. As for the networking industry, there are definite signs of pricing competition there too. And I'm not just talking about Ethernet Adapter cards.
Sal Habash |
