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Microcap & Penny Stocks : Simtek Corporation -- Ignore unavailable to you. Want to Upgrade?

To: NAG1 who wrote (2446)	2/22/2007 10:16:35 PM
From: Crony	Read Replies (1) \| Respond to of 2619

Neal, yes they are going to spend $12mln in 2007 on R@D, up from $6 mln in 2007. I have no problem with them investing into the future. But most of the time companies clearly indicate why they spend the money and when they expect those investments to contribute to the bottom line. Not the case here. One thing is to say that we have a big orders coming and we need to invest all the money into expanding the capacity. And another thing is to say we are going to spend the money on a new big thing but we won't tell you any timetables. Also there was some talk about fixing bugs with 4 mbit products. It is anyone's guess how complicated those issues are and what will it take to fix them. Let's hope HB can sell our story to the street. Because if there are not much to show in bottom line, one has to talk about the great potential of the new products. And it is not 1999 so most people don't care much about great stories. They want to see the money. Don't know how the street is going to react. One one side some people might find out about the company and like its story(first profit in many years, nice product) and invest. On another side the current investors might get disappointed that earnings are going to be not so great in 2007 and 4mbit chips are delayed. So it's going to be a wash. I would think this stock is dead money for some 6 months. The long term it is still good risk/reward play though. In any case, I will appreciate your take of the CC.