livininisrael, price to sales is meaningless in this context (and in most contexts). The gross margin is increasing every quarter, so there's no reason that the price to sales should stay at a constant level. Long term it's free cash flow that matters, not P/S.
Also, you are constantly talking about dilution. Most of the dilution was from years ago when Tower was in much worse shape. For TPSCo they paid just $8 million in stock which is a very tiny amount of dilution for such a huge amount of new revenue and capacity. Now that they are in much better financial shape, large amounts of dilution are less likely, though there may still be some when they acquire more capacity.
Jay, a funny coincidence, after you mentioned it a friend was excitedly talking about the new release of the game and admitted he's spent hundreds of dollars on songs for the previous Rock Bands. I wonder what the revenue share is on that portion of the business.