Mark, thanks for your mail from the last time
This is how I see the things (I might be WRONG):
- Fujitsu is very interested to keep a part of their foot in the future-oriented SPARC processor market.
- Fujitsu sees, that SPARC is at the moment a technology with chances and they have something with Ross, which "somehow might work out".
- They are ready to put some more money into Ross.
- However, YOU ARE RIGHT: at one point of time Fujitsu will loose
patience AND -THEN- everything is over.
If this "certain point has been reached" THEN, I agree that in such a case the shareholders (like you and me) will not see anything from our investment.
At the moment it looks to me, that Fujitsu "will give one more try" and will act after this. IF it fails -> Ross is out of business, as a (partially) publicly held company: Fujitsu might sell it or "absorb the rest" completly (whatever remains of Ross).
THIS IS THE RISK.
I believe, that the current stock price is a "bit overvalued" in respect of WHAT at THIS given moment ROSS has really to sell.
However, don't forget that the stock market is ready to pay some kind of "trust bonus" for RTEC in the future.
This is not just with RTEC, but in general with certain companies from which people are expecting "something to be happen in the future".
In case of RTEC is really up to the Managment, whether they will be able to manage a turn-over or not.
THIS IS THE RISK TOO: there is NO fact and NO indicator at the moment, which can give a reliable answer to that.
If it is really true, that the Viper will come out in 1999, then we lost already now. Who knows what architecture will be the winning one in 2-3 years ? Especially in the rushing Computer Chip Industry.
It could happen, that in 1999, let's say the 128-bit chip is already an "old hat".
No way, that I am bullish on RTEC at the moment. (Also, if you check some of my earlier posts - I clearly pointed out, that 10USD or something like that will NOT happen any time soon. At that time RTEC was around 5 USD.)
I believe, there is not much, we can do right now. I want to see, what the New Managment is able to do. We might have the first answers for this pretty soon. Then either I take my losses or I stay on hold.
(Btw, thanks for you great link to the "Electronic News". Don't forget the last section of this article about the turnaround of RTEC once in the past. Let hope they will manage it for the second time ... then we might be ok.)
Regards,
Stefan |
