Thank you for the response John, I had a post "disappear" recently, sucked into the fog of server overload. I sometimes wonder where those bits of information finally end up, would not surprise me if either a spammer or some govermental agency gathers it for "quality & training purposes" :o)
My question was more technically based, in terms of the correction, possible support at $40, the effect of the breakaway gap prior to the recent downturn, and indicator meaning (specifically Williams %R, RSI, MACD and Money Flow Index).
I entered at $40 1/2 the day after capitulation, based first on technicals, but also fundamentals. Looking back, the stock price answered my question, much more succinctly and clearly than I ever could have.
I looked at the comparisons between the companies, and one of us is getting funny numbers, there is some INTENSE rounding goin og :o), or it may simply illustrate the fact that numbers are just one part of the story.
First though, looking for 5-year figures for POWI is a tough job, since they only IPO'd early in 1998, or December of 1997
I'm getting my information from SI (Company Profile), which states SMTC has 3-year sales growth of 22% annually (which sound much more accurate, based on the slowdown in the industry in 1997 and 1998), a market cap of $1.6B, institutional holdings of 86%, and 9% insider ownership. Big variance between the numbers for sure.
POWI shows sales growth 3-year of 56%, 1-year earnings growth of 97%, 26M shares (it just split 2:1), a market cap of $1.33B, 28% insider ownership, and institutional ownership of 47% (I think they are sucking up the new shares pronto, hence the recent jump).
Anyways, it sure illustrates the importance of verifying numbers, regardless of source or assurance of accuracy. POWI has room to shoot up more based on institutional ownership being so low, I remember when SMTC was in a similar position 3 years ago.
Either way, SMTC or POWI, quality investment is what comes to mind. I lost my SMTC, and I gave up on them way too early, my VERY bad call and I'm still smarting from the decision.
NOK announced cell phone sales to exceed 40% growth next year, accelleration in subsequent quarters once e-mail and browsing is incorporated into the phones. Other phone manufacturers tell similar story. POWI wins here big time ... right place, right time.
You are right, SMTC is a "safer" bet than POWI, in terms of proven track record. And number of new products announced also suppports this. I'd gladly take back my SMTC shares at the right price, I love very few companies, SMTC is one of them.
I'm stocking up on gorillas, will try and buy at right price NTAP, GMST, QCOM, CSCO, JDSU, and POWI for long-haul, especially GMST and NTAP.
Thank you again for the reply John, has winter arrived yet, brrr?
Regards, JB
P.S. I don't like the look of the announcement from SMTC after market close on Friday. Not from an intelligent decision standpoint (which it is), but rather the psychological effect it may have on the price. Best to you, all SMTC longs, I'm cheering as loud as you, promise :o) |
