I have not updated this blog for a long time.
Seriously Folks. I was lucky to get out alive. It reminds me of another SMD. Finally I averaged down to 1.73 and sold out at 2.1 a decent profit.
Situation with pxpl was I had purchased initially at 3.22 after a disastarous quarter and I sold it 2.15 when they came out with an awful guidance.
Stock started going on its tremendous downtrends and was able catch it at 1.3 and sold it at 2.00 thanks to the moron Thomas Ko of cnbc.
Got back in again 1.73 hoping that the company will turn around. If march was a dissapointment then you would think they could have fixed the problem by atleast june or even Sep. They say earliest is going to be Jan and with cash burning so fast it is ripe for BK.
On Nov 2nd company came with another crappy quarter and crappy forecast. I did not panic but was waiting for January to exit but luckily I had a decent exit out in Dec @ 2.1.
Moral of the story is never believe what management says they are paid to cheer lead the stock and you need to do your dd on your own.
Simple pxpl had a broken business model from day one. CMOS business is occupied by giants like MU, samsung and OVTI. MU has its fabs so it can get GM of 42% whereas pxpl has 28% GM and going lower. Unfortunately sector intricasies are apparent only after you have invested and followed the sector for a while. OVTI looks cheap but it has the same problems like having no fabs but it has cash to weather any downturn. I will buy OVTI at $9 if it gets there not before.
Now I can sleep at night.
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