Example today from IBD:
Google teams with Ambarella
The search leader worked with Ambarella (AMBA), which makes low-power, high-def video chips, on a new type of wearable camera. The device will work with Google (GOOG) Helpouts, an online service that lets users share information and ask for help on projects via live video. Ambarella will demonstrate the camera, which will let instructors see video from a trainee's viewpoint and vice versa, at the Consumer Electronics Show, which starts Jan. 7 in Las Vegas. Google shares rose 1.3% to 1100.62. Ambarella spiked 11.5% to 27.94."
I am kicking myself because I was pondering a AMBA buy when it traded in the single digits. I bought INVN around ten instead but didn't get a three bagger (yet).
Like most things in life, the answer is it depends. Some companies use the show to make major product announcements or announcements of new deals. Often media going to these shows will review technology and post those reviews on line. Often major announcements are made at the CES show which is I believe one of the largest tech vendor shows of the year. If you own a technology stock, you want your company at that show demonstrating in front of component buyers.
The giant consumer electronics show where many vendors will showcase technology like whats new in MEMS technology. How can you not know that or not look it up?? Its not a national secret.
Put in a buy order at 15.75 for 3500 about a month ago. Got filled at 15.66. I will gladly take it.
And CRUS is doing so well too. That apple premium is something for GTAT and CRUS.
Is being told they cant sell to Samsung good for business. Maybe you would like invn to give up Samsung in favor of apple??
That's right. And many people refuse to be anything than little mary sunshines when it comes to apple.
Well what has the apple deal done for the stock price??
GTAT is a maker of sapphire glass which Apple will use in its Iphone and probably Iwatch. Apple apparently has forbid them from selling to Samsung. They have to maintain a minimum level of capacity without any guarantee it will be used. And it is now revealed the gross margins from the Apple business will significantly drag down the gross margin of GTAT overall. GTAT just announced a convertible debt offering of 125 million along with the issuance of 12 million shares (about ten percent of the float). When the apple announce came the stock went up in short order from the sevens and eights to the high tens. It now trades back in the eights and many analysts are saying it will probably go somewhat lower because now the warts of the apple deal plus dilution are working against the stock. Would you people be excited if INVN were to do the same thing, give up Samsung to be an apple supplier??
Well if INVN had estimates next year of fifty bucks a share in earnings WHY WOULDNT IT TRADE AT A GRAND?? If I have positions both long and short that are relatively equal they tend to cancel each other out. Who are the holders of these short positions?? Mostly institutions that own INVN on the long side also. People look and think "oooo look at all the float held short. SHORT SQEEEZE HOE!!!" Then post here wondering "Wheres the short squeeze??" People have been posting about short squeezes ever since INVN climbed from 9 bucks a share.
It called hedging. That's why the people who talk of waiting for a short squeeze and then wonder why one doesn't happen as the stock rises crack me up.