To: straight life who wrote (20162 ) 12/6/2004 9:18:38 AM From: Bob Rudd Read Replies (2) | Respond to OVTI: straight life, thanks for copying that post here. I don't consider Herb's opinions gospel, but his points on the 'good Q' being attributable to non-recurring items that didn't justify the jump rang true. As to banking on retrospective financials when new supply enters a cyclical market, my risk aversion is somewhat driven by AUO where I'm way underwater due to similar circumstances. If I were highly attuned to the camera chip market, I'd be more likely depend on my ability to see around the corners...but that's not the case so my margin of safety must include my margin of ignorance.Meanwhile, back on OmniVision: Quite of bit of reader response to last week's item here on the maker of camera chips, which are better known as image sensors. It was enough to get the Hostile React-o-Meter spinning, but by no means out of control. Many of the responses were along the lines that one reason investors have been bidding up OmniVision's stock is because it's cheap on a cash flow basis. (Since when are chip companies valued their cash flow? Ah, that's right, as I mentioned earlier, you use whatever metrics work. Besides, as we all know, cash flow isn't always what it appears.)
