i was right. the fact asp only rose from 1.29 to 1.37 when total revenues and sales of higher resolution increased dramatically and demand supposedly exceeded supply can only mean stuffing occurred. the reported q was stuffed and the guidance assumes they can stuff the channels again for the current q. they stuffed so they could meet their numbers and cover up bad yields. there was no improvement in yields other than that associated with inventory write-downs and execs said not to expect further yield improvements. and now sony, samsung, and aptina are all coming out with bsi to create more competition.
Everyone knows that semi/tech related products are subject to asp. A case in point was MU. Back in 1999 MU hit a high of $86. However, the anticipation for lower margins due to more supply was predicted and as soon as the reality hit the stock plummeted eventually to about $8 a share. The same was true with just about every semi related stock and it didn't matter if it was in th ebusiness of DRAM or Programmable logic or flash memory. Fast forward to now. OVTI business is booming. Simply check out its cash from year over year. That does not accumulate without a growth in business profitability.I see accumulation and not cash burn. ASP's are only one way to determine the health of the company. Many companies will actually lower ASP's to force the competitors out of the business. If you cannot make profit at $1 how will you make it at 80 cents? As small investors you and I do absolutely nothing to influence the stock price. Only the money managers have that kind of influence. From what happened on Thursday and Friday, those sources are extremely satisfied.
You can go with the leader or you can go with the competitors but someone will make the profit and treasure the cash. Until things change drastically OVTI is the clear winner. That Sony would want a piece of the action proves to me how profitable is the future.