The article possibly a joke. At least 20 billion payment by CRUS is totally joke. CRUS has cash 200 million,
market cap is 2.2 billion. Try to carry a 20 billion debt, this can sink the company very quickly. How can
crus possibly do it ???
Fab factory usually capital investment 2-4 billion is reasonable size. CRUS is so small, why need a fab
20 billion?? If the article said paying 2-4 billion, I can believe. 20 billion for CRUS is 100% joke.
Judging from Friday's trading over 2 million share and droped $1.13., there is quite possible a buying
fab deal, but I will say no more than 4 billion payment for the deal. 4 billion to CRUS is a big liability. A buying deal usually causes stock for a big drop on big volume. Friday action may reflect that deal.
I just guess that. I have no news for it.
Look OVTI, own a big fab for perhaps 10-20% of original investment (so bargain merge for OVTI). ovti
is so lucky. Now, OVTI is actually to be bought out about $30, $37+ is peak. So CRUS may
repeat OVTI history. OVTI lost Apple business during fabless, because missing a little delivery to Apple.
Fabless is a lot worry and headache for missing delivery, which can cause losing lot business.
Owning fab can deliver sufficient chip. But, carrying big liability resulting risky financial shape.
Also fab is also a difficult operation. CRUS has to learn how to do it.
OVTI fab factory is Chinese factory in China and big one, too. Chinese spent over 5 years
and don't know how to make enough chip. OVTI stepped in to buy it so cheap. Possibly TSMC
helped ovti to turn into good factory.
This is not an easy business at all.
If CRUS is buying fab, better under 4 billion. It also a big challenge for CRUS ahead.
Good luck and be careful.
You failed reading again.
I never own OPTI. I had OVTI before.
OVTI, was fabless before, now own big portion of chip foundry.
OVTI, high 37+, now to be bought slight below 30.
OPTI high 25+, now $0.6.
Which one you pick for CRUS future?
OVTI or OPTI ?
yes, you are the real joker and professional, too.
what I wrote about me is true.
but, I don't have to tell you what I do with this bubble.
you are dead wrong. to be honest to you. I made a small profit on this.
I don't have million dollars to lose, I don't invest million dollars either.
finally, to be truly honest, I never shorted any single share of this bubble stock.
I don't have to tell you what I do with this bubble !!
It is coming.
Dow has dropped 2.3%, while CRUS has dropped 8.05%.
If dow drops 22%, CRUS could drop 30-40% or much worse.
How low will CRUS drop??
What will CRUS stock do, if DOW drops 4,000 points (22% drop from here) ??
Don't miss this article, copy the headline to search on yahoo, you will see the
report. Good luck, be very CAREFULL !!
Opinion: Get ready for a 4,000-point Dow drop
By Mark D. Cook
Published: June 10, 2015 6:01 a.m. ET
You keep assuming that CRUS is VIP client for TSMC. Maybe way wrong.
If not, Do you think TSMC falls in deep love with baby CRUS?
Will TSMC unconditionally take care baby CRUS in the future and beyond?
Unconditionally to make unlimited chip for CRUS at low price forever???
What if CRUS don't get chip and fails to deliver?
Nearly end of world for baby CRUS when that happens!!
Is fabless bubble bursting??
I heard a big old boy crying so hard for losing hot air balloon .
seems bottomless=fabless ??
I understand what you try to say. CRUS tries to use TSMC low cycle to get
chip at cheap price.
but, question, how can you assume TSMC low cycle will match CRUS high
cycle. Will crus order lot of chip during TSMC low cycle without the immediate
sale or near term sale? Carry inventory is a high risk for fabless.
Then, you explain to me why OVTI got trouble to be fabless?
OVTI is lucky:
1. They sell lot chip to Chinese cell phone.
2. they have big office, facility in China.
3. they got lot order from auto, security, medical field. many clients.
4. Most lucky is they bought a good foundry in China for super bargain price.
Chinese do not know how to run chip foundry. TSMC possible the one to help
OVTI to bring up that super bargain foundry.
So, now, a rich Chinese business offer to buy OVTI $29+ near 30.
Because OVTI fits in Chinese people interest. Otherwise maybe still
big yo-yo today. Why OVTI fails so big time on Apple? Why Apple
contracts Sony for higher price than OVTI?
If fabless so super. Explain to me, why CRUS does not grow in last
20 years? now, maybe an opportunity.
BUT, WILL CRUS grows up ???
We will see.
Do you think CRUS is much smarter than OVTI ??
Or maybe more lucky? ( I strongly suspect the theory).
TSMC does not care who is doing the sale.
OVTI is out, CRUS in,
when CRUS out, plenty salesman will get in.
Fabless bubble always fears not getting future chip to deliver. So they usually ordered much more than their sell order. Carry some inventory not necessary can be sold in future. Add up cost.
Even you get enough to deliver now. How can crus ensure get future chip from TSMC?
The main thing is fabless bubble either pay high price now, or pay high price later.
Or the worst is get dumped in future date.
That is what OVTI is . Troubled big one year later.
THE GAME IS REAL, HIGHLY DEPENDING ON WHO CAN MAKE IT.
Who can sell is NOT that important.
Only two options for CRUS to get chip from TSMC.
1. Pay high price to get VIP client list for big quantity. Means much high cost to CRUS.
2. Get a secondary class client for a limited guaranteed quantity chip at reasonable price. Any additional
order on standby basis.
Either option is a high cost for CRUS. How will CRUS get unlimited chip at low price?
TSMC is extremely busy chip foundry. How can CRUS squeeze more chip out TSMC?
OVTI simply missed one little order to Apple. Then Apple bring in higher cost Sony to secretly take most
OVTI order away (chip by TSMC).
Apple paid price to ensure that it gets enough chips.
This game is highly depending on who can make the chip.
CRUS is fabless, how can it expect higher GROWTH ?
do you know whether contractual obligation for next 12 -15 month or next 6 months.
OVTI scared to be put aside, so they order much more than they need to deliver. INVENTORY carry for future, in case
they are pushed out TSMC door.
I am NOT predicting CRUS future.
I have no idea how CRUS will do in future.
Whether it repeats OVTI or not, NO IDEA.
Maybe much worse than OVTI, I got no idea either!!
OVTI has a lot other clients beside Apple.
CAR, medical, security camera, etc....
Only point is fabless is lot of trouble.
Little fish to do with Apple also a potential big trouble.