I thought that this was a great opportunity for a turnaround story but it isn't looking to be that way.. The market was zooming until recently and many micro caps made their run and txcc has turned out to be a huge opportunity cost for optimists on this board that had the ability to dive into another story that would have generated much better returns.
Recent activity suggests the market may be turning and txcc got left behind. I understand that this shouldn't and won't likely trade with the market, but sometimes we read too much into a company's prospects... And meanwhile there is just not much there.
As you said, TranSwitch's viability as a company really has little to do with the macro environment. We will soon find out if you and I were wrong to believe in the "story" i.e. by the end of the year. I still come back to the point that Dr. Ali would be crazy to keep reiterating that they will be cash flow positive in Q3 and profitable in Q4, if he didn't think that was in the bag. Of course, he too could be wrong.
Not everyone can be or wants to be CEO. Someone in that position gets there because of certain personality traits. One is high optimism and belief in oneself.
Ali does not have to be crazy to believe that he can get to those numbers if all the pieces just fall in place. If you have watched Seinfeld, 'it is not a lie if you believe it'.