TRID - Bad news continues
Downgraded today and dropped 17%
"San Francisco-based Thomas Weisel Partners downgraded Trident to "peer perform"' from "outperform" over concerns about increased competition"
In effect the stock dropped 17% on an expected 10% earnings drop. That's 50% in 3 months.
"The options-grant issue remains potentially expensive, time-consuming and will scare off some institutional investors, says Wedbush Morgan's Berger. But market trends in flat-screen TVs are the most important part of Trident's near-term story...."My response is, [if that happens], is that going to change how many TVs are people going to buy?" he says. "I don't think so."
So the question is - are TRID sales affected?
Because, at the revised and lowered valuation, TRID now has a 18 P/E. For a company still expected to grow 40%+.
We've seen how strong flat panel TV sales have been. We've seen how TRID has gained market share.
I am riding this out for now.
"San Francisco-based Thomas Weisel Partners downgraded Trident to "peer perform"' from "outperform" over concerns about increased competition"
In effect the stock dropped 17% on an expected 10% earnings drop. That's 50% in 3 months.
"The options-grant issue remains potentially expensive, time-consuming and will scare off some institutional investors, says Wedbush Morgan's Berger. But market trends in flat-screen TVs are the most important part of Trident's near-term story...."My response is, [if that happens], is that going to change how many TVs are people going to buy?" he says. "I don't think so."
So the question is - are TRID sales affected?
Because, at the revised and lowered valuation, TRID now has a 18 P/E. For a company still expected to grow 40%+.
We've seen how strong flat panel TV sales have been. We've seen how TRID has gained market share.
I am riding this out for now.
posted by Andrew at
9:54 PM
2 Comments:
What is your comment on:
"The analyst's check of the television supply chain indicated that major tier 1 manufacturers are likely to move towards single-chip solutions in 2007, but are unlikely to adopt Trident's single chips in 2007 because the company won't start providing samples of its latest chips until the third quarter."?
Hi Andrew,
The market for LCD TVs will be growing in coming years - and so will be the sales of Trident.
Although I have initiated a small position in high 15's - after the value of stock has been cut in half from 30's - I would like to get your expert opinion on how much more down side do you see for this stock. I am not an expert but I think it will stop going down somewhere around 12. I will be buying more if it goes down and plan to increase my position to 1000 shares. What do you think?
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