However bad earnings could be, you would believe that at .5 book value is very unusual for a tech company. Shorts are also in a odd ball position here because cash is 270 million and mkt cap is same, debt at 35 million, so what gives?? Recent upgrades lend some confidence and one could say all bad news is priced in. Well see, seeing Spansur here as a long is somewhat encouraging as well because he usually is a short. I think it is a good gamble and I stress gamble because anything is possible in this market. Couldd open at $7.00 tomorrow and run to 10$ on covering, could open at 4.5$ and fall to 4$. glt
spanspur, try this on for size. ovti gets 80% of its revenues from china. recently the chinese government proclaimed that it does not want its citizens using chips that are designed or manufactured outside the country (or which are associated with profits that benefit other than chinese companies). Arguably, this means that the chinese gov has decreed that no more of its business go to ovti. so there goes 80% of ovti's revenue.
I have read the articles talking about the decree and understand the argument. whether it's for real is another issue.
if you want to research it look for the recent stories that showed that china consumes 1/3rd of the world's chips.