John - by no means I am here to defend Mr H., but I think hintsight is 20/20. Before the Asian Flu, fab space was at one point hot commodity because those who owned it got priority to those who rented space. So, in that sense, CRUS got a double whammy. It was a fabless shop when rental was high and then there was a sudden glut by the time it became a landlord, so to speak.
Regarding Mr French's original announcement, it is hard to say what was the power structure at the time. It is possible that he was trying to say things in a decisive manner so to reverse the psychology in the company at the time. Then, he quickly realized the timing might dealt the company with the 3rd whammy. I mean, if CRUS had unloaded the fab last Fall, the would have been like selling ice cream in the dearth of winter! So, the blunder may indeed cause some renewed shareholder confidence, but it may very well be the lesser of two evils.
Of course, the scenario above is a pure conjecture, but it is hard to imagine why would seasoned execs like Mr French would want to exposed his weak flank by announcing the sale ahead of the schedule
best, Bosco |
