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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (1404)	6/12/2014 4:58:14 PM
From: Kirk ©	Read Replies (1) \| Respond to of 26543

Maybe they'll have to lay off on the stock option grants, eh? (Actually, I have not checked how much that matters, but it always annoys me with tech companies here in Silicon Valley.)

To: The Ox who wrote (1404)	6/12/2014 5:54:13 PM
From: w0z	Respond to of 26543

Still listening to CC but GM% dropped from 37.2% to 34.2% (Q3 to Q4), due to annual telecom price reduction, mix issues and U2T acquisition. More concerning is forward guidance showing 32% for next quarter. Strange that their high fixed cost business model is not leveraging earnings more with higher volume and new China manufacturing facility. Alex Henderson is nailing them on this point as I write this. They are definitely headed for serious downgrades after this CC. Revenue looks great but they are not leveraging it as in the past. Very disappointing CC...reminds me of 2011. Glad MU is picking up some of the slack this will cause in my portfolio. Now sub $20 AH.