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Technology Stocks : CRUS, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Phantom Dialer who wrote (5607)	4/18/1998 3:13:00 PM
From: Jan A. Van Hummel	Read Replies (1) \| Respond to of 8193

Mr. Teo certainly did not intend to invest heavily to find himself in the position he is in today. If he were to liquidate his original investment today he would lose more than 50 % as word of his sales will probably trigger a sell-off by others as well. (When the Hunt Brothers tried to corner the silver market, the easy part was to establish the long position, the more difficult one was to take advantage of it and we all know the outcome). Increasing his stake will lower his cost and offer a better chance down the road to exit less painfully, if he elected to do so, or if he gets an offer from an interested party to sell off his holding. Maybe you are right. The fact that he invested heavily and keeps investing at the present time only shows his genuine interest and perhaps commitment to the company, but it does not prove, at least not yet, that he could force a change that will enhance CRUS' performance and all shareholders' returns. At this very time Mr. Teo's only concern is how to get out of this pickle without losing the shirt, after all the money comes not straight from his own pocket but from a number of trusts and funds that, I assume, he has been entrusted with to manage. If he has a grand(er) plan explain it to me. I am long at 16.25 and have not bought additional since already involved in S3, which has also fallen upon hard times. The whole segment is hurting and has underperformed. The Nasdaq index has gone from some 1300 or so to some 1800+ during that time frame. In time some of these companies will recover, others will fall by the wayside (e.g. NINE). Let's just hope that CRUS is one of those that will recover. Given the critique on current management you will have to vote with your shares to force a change and hope that whatever new management comes in will do a better job. I am sorry if I rattled the cage. Can only recommend you not to get carried away by Groupthink. The fact that you may like what someone writes because it supports your opinion doesn't make the writer necessarily right, conversely, the fact you may not like what he writes doesn't necessarily make the writer wrong. Stocks, like CRUS and S3 are rather speculative as they operate in a highly competitive environment where it is not a matter of manufacturing efficiencies or operating at the lowest cost, but rather the extend of intellectual property, braintrust and creativity. This is how S3 missed a production cycke and paid dearly for it. This is why CRUS exited certain businesses and emphasized others. Whenever such a change is made we have to live with the consequences for an extended period of time until a change in direction can be made or forced. The difficulty is that there is a certain level of crystal ball gazing to know what tomorrows market will demand. So one of the difficult choices is, do you want to be a market leader or innovator and risk betting the wrong horse, or a follower? Either way, it is not simple. If it were CRUS would be trading in the 20s or higher and so would many of its peers. JMHO Jan