We'll help me out..... This is a discussion board after all. What products are going to cause this skyrocket? Thanks.
Is this the business that himx is counting on for mass production? This conference is three little start ups that no one has ever heard of. They say this year we will once again blow people away- blown away? This stuff hasn't even made a stiff breeze. I understood the hope and hype for glass, but this stuff is so back water compared to google- it doesn't amount to anything. Even this occultus rift or whatever it is- how far down the road are we talking? And will it ever be anything more than a niche product like those Alienware computers. It seems like himx investors are banking on a massive business boost from all this stuff coming to market in the next 6 months. I just don't see any appreciable business from any of this in the foreseeable future. Again, I understood the glass hype and how the share price responded, but this makes no sense to me.
When I say the market is slowly turning their way, I'm interpreting the publicity and growing sensitivity to these contracts that essentially are a single source " good ole boy network" way of doing business as a opening for RWC. Hopefully , if it's 2006 all over again then you're right we'll just keep bumping along.
No, no one knows about RWC; forget about under the radar- you need sonar to find this company. Look how many shares trade a day. When you list to their quarterly call, then have one caller call in- the same guy every Q, Allen , end of list. When hear the RWC executive team ever went to a investor conference to tell their story?
Like I say you see the glass half empty. I see a company that knows what it wants to accomplish, they know what the have to do, they have the financial strength to invest in that plan and let's see what happens.
Why are you so angry dude? Self described making money hand over fist- something's not right with your story. As someone else has already pointed out you claimed to have closed your supposed short position in the low $3's. I say supposed because I find it unbelievable that there is a brokerage that would facilitate a short sale of a nano nano cap stock in the $3 or $4 range. Would you mind sharing the name of the brokerage that you used for your short? And cheer up for cripe sakes- it's only money!
There is no industry yet and glass has shown us that it is by no means a sure thing. There is no proof of even limited consumer acceptance, much less wide spread adoption. The industry that they do have is falling through the floor.
I could ramble on again, but I'm wearing myself out. I agree RWC's past performance is not a confidence builder. Don't see any concern about pricing pressures- Motorola's success shows us how much price matters and per Mr Storey a couple of competitors have actually exited the business.
My feeling is this; you're seeing a glass half empty, I'm at this point seeing a glass that will very likely become half full ( good for $8/sh) and a possibility for the glass to become overflowing ($12+/sh). Here are some of the ingredients: a large addressable market that is slowly turning their way, activist funds on bod and pushing for growth, per CEO these 4 funds own over 50% of outstanding shares ( very low float), King2 radio, company is completely unknown and any good news makes it ripe for mo- mo players to run with it.
Bottom line is I like the risk/reward.
Thank you for your post. I for one appreciate hearing from the critical pov.
First my thoughts on last quarter.... In a word, I would say disappointing. If it weren't for the foreign sale likely the results would of been negative compared to last year's Q1. We don't know how much of that $2M fell into Q1 but I would guess at least half. So congrats to RWC and the Australian dealer for the win, but from what the CEO said on the call we really can't count on foreign sales becoming a regular contributor- at least not for the remainder of this year. At this point I would give the company a grade of "C", they're doing ok but really not a justification for a P/E of 50.
The reason I own shares in this company is not for where they are today, but on the hope of where they can be in a year or two. There is no reason they can't take the next step up and start to win bigger deals. I think the King2 radio will really help them in this regard. Even though I personally think the the share price is maybe 20% overpriced at this point, holding the shares with that risk is justified with the potential reward of what this company can accomplish.
On your post I have to disagree with point 3. I don't think pricing is a issue on these deals at any level. I posted about this previously, and my belief is that most of these gov./public safety agencies give the product price about a 20% weight when looking at the bid. For this mission critical piece of equipment they want the features and performance that they want and that's what they buy. They don't say this one is almost as good, but it's half the price so let's go with it- too much is depending on these radios to accept second best just to save money. That's how I've explained it to myself that Motorola can have 80% of the market yet be so much more expensive. That's why I think the King2 could really open things up for them. RWC will win when they can compete on performance not price. Again I like the risk/ reward here.