This slow-down in capital spending is hitting everyone in the industry. I don�t see how Frequency will NOT be affected, but can only hope for the best, as they have not mentioned a word of this to investors, and I�m happy with my entry price ($19).
IMHO, FEI�s management has yet to prove themselves top-notch. They�ve got good science and have found themselves in the right place at the right time, so they�ve delivered a couple of good quarters. But I�ve yet to see any great vision or strategic genius in management. I see an organization that just happens to make good technology that the market needs at this point in time.
Only time will tell us whether they�ve got management that can lead an organization in a highly competitive market, or will be another flash in the technology continuum.
I�m prepared for Frequency to miss revenue projections with the spending slow-down, but if they miss expectations without warning us, I�ll start to question management�s worth, and will probably pull my money out. I simply cannot afford to give my money to a management group that does not want to communicate these matters to me. A slowdown is expected, and factored into the price, but no big fund will touch these guys if they don�t treat their shareholders with respect.
I have seen some recent signs of fundamental and management improvement, but don�t have the confidence that many of you have here
Kek: As an answer to your concerns: FEI does not have to WARN. They are NOT AFFECTED BY CAPITAL SPENDING. If they have to warn, it will be a positive warning indeed but they do not do that. Do not go and rehash history with half truths about old legal matters. Just remember: the Government needs FEI and not the other way around. FEI will do the job when called upon as they always did but they have no interest in low profit margins. They are busy doing what they do best..buiding more than 500 quality rubidiums a week. Be patient with stock. Disclosure: I am a shareholder of FEI.
FEI's top line growth went up over 21% in the second quarter from the previous quarter! How many other companies have done this? They have the cash they need to move forward. This coming quarters numbers should be even stronger. Their is no need for profit warnings. If you don't believe in this company please do us all a favor and move on!
Frequency has been in business for over forty years Peter, yet they can only manage bring in about $11million in revenues per quarter. That�s pretty damn dismal in the technology industry (and this year is a vast improvement over prior years). I don�t see the next Gates, Ellison or Chambers here Peter, their historical performance speaks for itself.
It is VERY evident that capital expenditures have slowed dramatically this quarter. Frequency is not immune to this slow-down. If you don�t believe that a slow-down in teleco equipment expenditures will affect Frequency�s top-line, that�s fine with me.
What I'm saying is that I will be disappointed if they are experiencing a slowdown in revenues, but are not communicating this to their investors.
Despite management�s undeniably poor performance over the last forty years, I bought an interest in Frequency because I�ve noticed a shift in management�s culture, as well as a rapid improvement in fundamentals. If this organization can stop acting like a corrupt and secretive government contractor and get competitive, as they appear to be doing, they could do well.
"This slow-down in capital spending is hitting everyone in the industry. I don�t see how Frequency will NOT be affected, "
Well I'll tell ya how.....It's called gaining market share. I don't expect every company in this industry to be effected negatively. Small companies with innovative and proprietary products do well in economic slowdowns....That is why small cap stocks out perform in these environments
Large caps are more dependent on general economic conditions....Their growth is dependent on the general growth of the economy
" I�ve yet to see any great vision or strategic genius in management. "
Himmmmm.......Such as ??....No offense but would you know it if you saw it?
If I were you and so negative I'd sell right now........If you are indeed long that is