Tom,
As a fund manager, you should know that ISSI, along with three other
fabless semiconductor companies, are building a fab in Asia, which
will put them in a better position. True, fabs are good to have,
but they bring a lot of fixed costs with them, which could make a
company's situation much worse in case of ovresupply!
Therefore, I praise ISSI's solution of this problem.
I also had a short position in ISSI at 67, which I covered in late
September in the low 30's.
Now, I have the stock with an average price of 21, and hope for a
strong rebound next year. Time will show who is right, but SRAM
oversupply has not become a problem yet, while Dell talks about a
shortage and the CFO of ISSI is upbeat. |
