GNSS misses big - Good news for TRID?
There are just 2 ways the flat panel TV market is going: soft or hot.
In support of soft market is the following
1. Corning (GLW) and 3M faced profit drops due to inventory buildup. This was blamed on high expectations of sales tied to the World cup
2. GNSS just reported earnings miss. Specifically, it said that it was having problems with key customers.
3. LG Philips (not LG Electronics) had a bad earnings release and fingered Flat panel TV sales
In support of a hot market is the following:
1. Best Buy, Circuit City, Sony and Samsung all reported massive flat panel TV sales.
2. 3M reported firming panel prices http://www.ft.com/cms/s/5180ed90-6054-11db-a716-0000779e2340.html
3. Hype making this the consumer product of the year. Prices have hit the sweet spot (<$1000) http://www.consumerreports.org/cro/electronics-computers/tvs/lcd-plasma-tvs-11-06/overview/1106_tvs_ov.htm
4. Unit sales are incredible. Expectations are for LCD TVs to hit 42M units in 2006.
5. Top tier companies like Samsung and Sony are taking market share from others http://www.digitimes.com/displays/a20061020A8045.html Samsung alone is seeing 150% growth in LCD TVs alone.
6. Inventory build-up in advance of Xmas. http://abcnews.go.com/Technology/ZDM/story?id=2477974
So how can GNSS be facing slowing sales when business is booming? I think it soundly confirms what I have been saying: TRID has established a massive technical lead and selected the right customers. As GNSS customers lose market share to the big boys, it is getting more and more boxed out of the market. Indeed, GNSS knows that it can't do what it tried to do last quarter and blame sluggish sales. Sales are booming - GNSS is just losing market share.
Another reason for why I suspect that I am right: summertime is peak season for these chipmakers. The manufacturing chain works as follows. Retailers are stocking up on a massive amount of Flat panel TVs for the holiday. Those products had to start shipping October 1st to reach America by mid November. That's Summertime production and purchasing of chips.
To net it out: retailers are making this the product of the year. It doesn't matter if consumers step up or not - TRID has already sold their product, so this quarter is in the bag.
With massive production build-up and GNSS seeing weaker sales, I call this testimony to TRID accelerating growth.
Liverocket is buying TRID in the morning. I also recommend calls.
In support of soft market is the following
1. Corning (GLW) and 3M faced profit drops due to inventory buildup. This was blamed on high expectations of sales tied to the World cup
2. GNSS just reported earnings miss. Specifically, it said that it was having problems with key customers.
3. LG Philips (not LG Electronics) had a bad earnings release and fingered Flat panel TV sales
In support of a hot market is the following:
1. Best Buy, Circuit City, Sony and Samsung all reported massive flat panel TV sales.
2. 3M reported firming panel prices http://www.ft.com/cms/s/5180ed90-6054-11db-a716-0000779e2340.html
3. Hype making this the consumer product of the year. Prices have hit the sweet spot (<$1000) http://www.consumerreports.org/cro/electronics-computers/tvs/lcd-plasma-tvs-11-06/overview/1106_tvs_ov.htm
4. Unit sales are incredible. Expectations are for LCD TVs to hit 42M units in 2006.
5. Top tier companies like Samsung and Sony are taking market share from others http://www.digitimes.com/displays/a20061020A8045.html Samsung alone is seeing 150% growth in LCD TVs alone.
6. Inventory build-up in advance of Xmas. http://abcnews.go.com/Technology/ZDM/story?id=2477974
So how can GNSS be facing slowing sales when business is booming? I think it soundly confirms what I have been saying: TRID has established a massive technical lead and selected the right customers. As GNSS customers lose market share to the big boys, it is getting more and more boxed out of the market. Indeed, GNSS knows that it can't do what it tried to do last quarter and blame sluggish sales. Sales are booming - GNSS is just losing market share.
Another reason for why I suspect that I am right: summertime is peak season for these chipmakers. The manufacturing chain works as follows. Retailers are stocking up on a massive amount of Flat panel TVs for the holiday. Those products had to start shipping October 1st to reach America by mid November. That's Summertime production and purchasing of chips.
To net it out: retailers are making this the product of the year. It doesn't matter if consumers step up or not - TRID has already sold their product, so this quarter is in the bag.
With massive production build-up and GNSS seeing weaker sales, I call this testimony to TRID accelerating growth.
Liverocket is buying TRID in the morning. I also recommend calls.
posted by Andrew at
6:24 PM
1 Comments:
which trid call is the better buy ?
Please, give suggestion. My greatest angel.
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