Supposedly they brought in this new management team to fix the old management mess. 3 years into the job and they continue to burn more cash each and every Qtr. When this management took over they had more than $340M in cash, after tis Qtr they will barely have $150M+.
Management has lousy timing. When everyone was focused on smart devices (iphone, iPads), FORM was beefing up it's DRAM presence even though all evidence was pointing to slowing PC sector which proves they are out of touch with their customers and the rest of technology world.Then they acquire MP, which would have been much better acquisition 2-3 years ago, instead of putting themselves on the auction block. Management team is in denial and full of arrogance. They think they can fix this business model believing and quoting industry growth research. Even if they manage to break even 3-4 Qtrs from now, it will take forever for this company to recover a fraction of the cash burned since 2008 (in 2008 they had $500M+ in cash).
Few years ago there were 7 BIG players in DRAM, today there are only 3-DRAM makers left. When things seems to improve in DRAM due to fewer players, FORM is scaling back in DRAM. They were initially targeting 65% of DRAM sector, but last Qtr they want this scaled down to 40%+.
The irony in all this is the Chairman of the board is the old CEO who screwed up this company by allowing Korean competion steal their DRAM business. The rest of the board members are all Silicon Valley dinosaurs. BOD is absolutely clueless and is in no position to force this management to stop burning more cash and sell the freaking company.
My feeling is management is content with status quo burning more cash each Qtr while taking good paycheck and awarding themselves with $2-3M in stock based compensation each Qtr. In the end Management will waste most of the remaining cash by experimenting with different business model until they finally get ousted. By then there will not be much value left.
Management is full of hype with their transformational message but they are full of fluff when it comes to producing results.
This very management team had promissed break even by mid 2011. 2 years later and they are still expected to burn another $15M this Qtr with no end in sight.
everyday that shorts wake up to find there is no news, they play the same game.
The problem is these are BIG players with deep pockets. They pressure the ASK and buy on the BID. If you take out the ASK they take the stock lower. This is great strategy to cover at lowest price possible.
All this is made possible in absence of company news or analyst commentary.
there is 54M shares short and they refuse to cover higher, so they keep sitting heavily on the ask while buying on the bid. It amazes me that people end up selling to them at the BID while they cover.
This has been their strategy every day especially in absence of any corporate news.
No one gives a rats #$%$ what you do. Your the #$%$ who posted yesterday "Anyone buying NIHD above $1.40 has mental problems".
I guess you have mental issues.Go fuckoff, no onw give a $hit about your opinion.
you are one filthy human being. I know you're a daytrader and don't own 1-single share. You probably sold and you're dying and wishing to buy lower. You have shown your true color by your negative posts. "HA HA penny stock", " Don't buy head fake #$%$".
I don't mind daytraders, longs or shorts but I hate nothing nore than a person who pretends to be long and yet cannot wait to post every possible negative thing about NIHD along with reading Facebook posts. Do you understand how pathetic you are?
You need to get a #$%$ life and get off this board because you're making a fool out of yourself.
It is probably lower since 3/15 by at least another 6M since they brought the stock down from $5. They are pressuring the stock all day by leaning on the ASK and hoping more idiots will sell to them at the BID.
Ask yourself how is it they covered 2M shares and yet the stock is at the lowest point?
He claims to be long but talks about head and shoulders and crater to $2.
Beaware of wolves in sheep clothing.
why do you pretend to be long? Anyone long the stock would never suggest stock crating to $2.
You're not fooling anyone but yourself.
there was 56.25M share short as of Feb 28, 2013 (38.5% of the float). Most of this short interest is held by BIG players capable of pushing the stock around .
The big players are covering their short but they are smartly pushing the stock as low as possible and covering near multi year lows. For example, yesterday we had more than 4M shares trade and if you look at volume analysis most of the tradess were on the buy side(more like covering). Unfortunately for longs the stock was kept at the lows of the day all day and as such the short covering was done at multiyear lows.
The point is there are a lot of shares to cover, but professional shorts want to cover as low as possible. Even if the stock gets back to $5, that will give them the ability to cover millions more shares under $5.
I expect shorts to try and break the stock to new lows and again with the intent to then cover as low as possible. Yesterday it took about 300K in the ealry session trading to knock the stock near its lows and it was kept there all day.
The strategy is to knock the stock down and cover at the lows. I am betting the next short interst report will show a small decline. If I am correct, then ask yourself how is it the stock is at its lows while short interest declined?