You might know of the negative note by Robert Baird (analyst) yesterday on OVTI saying they've lost Motorola as their customer. True as that might be in my opinion management would have considered that while giving out guidance on earnings call. This kind of news is always in the making and companies don't get up one morning to find out that they lost a big customer. Their biggest new customer win is Lenovo and they supplied chips to the top 6 cell phone manufacturers anyway (remove motorola now and so 5). I am just surprised at how expensive stocks like Micron are when they are making such huge losses where as OVTI which has 6 bucks in cash and some 80 - 90 Mil in profit last year is trading at such discounts.
33% short ratio at these levels could very well result in a squeeze specially since management never cares to respond to any negative press releases and so it's a free hand for the big guys.
How do you counter the free for all manipulation from the big guys? Hmmm... buy some really cheap calls may be?
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