Re: First good idea
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Any updates?
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Yes. The company reported its first Q, it was not quite as bad as I thought it would be.
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Heh, I think we blew it. We knew the first quarter was going to be bad from a revenue perspective but didn't take into account how much of the bad news the models had already incorporated. The 10% stock price drop we were hoping for never materialized making it much harder for SM to fill his position. I took a 15% position right away. (small portfolio).
If we had read Q1 correctly I think buying half the position in advance of the release would have been better. The week preceeding the release was much more liquid than recent days. That said, the market has not caught on to the strength of the first quarter. Stock is up modestly. I think though top line was weak as expected, progress on gross margins in a seasonally weak quarter was exceptional. This corroborates our story which we will give in detail eventually.
Krishan
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