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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated -- Ignore unavailable to you. Want to Upgrade?

To: tinkershaw who wrote (1522)	6/18/2005 1:55:39 AM
From: Willie263	Read Replies (1) \| Respond to of 2955

Tink, You must have bought just about at the 52 week high if you are down $3.50 on OVTI. I started buying around 10, some at 9 then more on it's way up to 14. But have lost my shirt buying various 2005 call options. You are right, the product transition did slow them down and they have not been quick to resume their previous growth. I think all that is about to change as they have announced a new top tier customer which everyone assumes must be Nokia, that will bring in a lot of sales. They are also just beginning to supply the automotive market for backup sensors, air bag sensors, lane change sensors, etc. CEO says this will be a huge market, bigger than camera phones. Don't know where you are getting information about the market being a commodity market with no economic profits. Last time I looked OVTI's gross profit was around 40% and net between 20-25%. Doesn't sound like a commodity market to me. They are also sitting on a pile of cash, approximately $4-5 per share with the share price presently between $15 & 16. They are growing in the digital camera business as CCD's are replaced by lower cost CMOS's chips. Tink, I have you peoplemarked and value your opinion highly, but truely believe you got out at exactly the wrong time. OVTI will have a cc next week with their year end, if forward guidance is good, and 85% institutional ownership and 30% short, this stock could explode upward (IMHO). Product is not simple as some of the competition is dropping out and I haven't seen any new competitors, reports also that Nokia is unhappy with the new MU chip and may be switching to OVTI. The old chips (VGA)have become a commodity, but OVTI has transitioned to the new Omnipixel chips which may leave the competition eating their dust. They now have approximately 50% of the camera phone chips, taking a larger % of the digital camera business, and may be on the cusp of an explosion in automotive chips for image sensors. ps. I've got the Cambridge Soundworks speakers too, and look forward to seeing which ones you get as a replacement. Willie