Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (81740)

11/20/2018 3:17:10 PM

From: Sam

1 Recommendation

Recommended By
Return to Sender

Read Replies (2) | Respond to of 95559

Nvidia No Longer Comes Up Short
MARKETWATCH 3:15 PM ET 11/20/2018

Symbol Last Price Change

NVDA	148.3801	+3.6801 (+2.54%)
QUOTES AS OF 03:15:45 PM ET 11/20/2018

Time apparently heals all wounds--even for a maimed short seller.

Citron Research recommended that investors start shorting chip maker Nvidia(NVDA)back in December of 2016 (https:// www.wsj.com/articles/nvidia-shares-fall-7-on-short-sellers-warning-1482969542). That was a painful trade. Nvidia's(NVDA) shares, which had already tripled over the previous year, went on to gain another 147% over the next 21 months until the stock peaked on Oct. 1.

Then came the market's big tech rout, following by Nvidia's(NVDA) own disappointing forecast (https://www.wsj.com/articles/ nvidias-crypto-burn-will-take-time-to-heal-1542553201) issued late last week. By the close of trading Monday, the chip maker had shed half its market value in less than two months.

That gave even Citron a change of heart. The short seller tweeted Tuesday (https://twitter.com/CitronResearch/status/ 1064900455266889728)that Nvidia's(NVDA) shares finally offer "an appealing risk-reward to investors," and it projected that the stock price will bounce back to $165--about 14% up from their last close. That is more than 80% above the original $ 90 target Citron first proposed, though is only about 28 times Nvidia's(NVDA) forward earnings compared with the 33 times implied by the original target.

Write to Dan Gallagher at dan.gallagher@wsj.com (mailto:dan.gallagher@wsj.com)

To: Sam who wrote (81740)	11/20/2018 9:09:36 PM
From: Donald Wennerstrom	2 Recommendations Recommended By Mao II Sam Respond to of 95559

The trashing of Micron and WDC over the past many months is hard to understand. The reasoning of those doing the trashing IMO is very superfluous. Demand is usually brought up as going down, but not really, because bit sales are always up, and expected to continue to rise which stands to reason for all the old and new uses for memory that continue to unfold. In general, the selling price of DRAM and NAND continue to go down. This is to be expected. Prices for components, and electronic product sales will always continue to go down which always brings on more sales opportunities. Does anyone go to Costco, Best Buy, and other suppliers of electronic equipment and expect to pay more for the items they buy? NO way, the prices always come down, and new products are offered on a continuous flow. The real key in final profitability for the companies involved is being more efficient in producing the increasing bit use than the cost of producing the bits. If that can be done, all parties win including the customers and the companies all make a profit. The analysis of this process is never looked at by the "wizards" who write the assessments of these companies. It is too hard and most, if not all, are unqualified to do this kind of research and reporting. TrendForce is one of the worst IMO. The negativity is always there, whether or not, the situation warrants it. As usual the future earnings reporting will tell the tale, but in the meantime the negativity is taking its toll.