Senjenpa leaves yahoo TMTA board sighting possible upcomming conflicts of interest.
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keep it simple...
by: senjenpa
Long-Term Sentiment: Strong Buy 03/24/02 07:34 am
Msg: 21960 of 21964
Lately, I've been struggling to find new ways to add info value to this board. Cy's comments this morning hit me in the side of the head. As long as TMTA keeps leading mobile chip innovation, there is little need for investors to struggle with extraneous thoughts.
Soon I'll add my 2 cents less frequently. Don't be concerned about my health... I'll be choosing to limit my participation because of conflict of interest standards. As institutions that my firm has relationships start buying TMTA again, I'll choose not to discuss TMTA online anymore because of my personal and family's TMTA investment position. I believe that avoiding even the appearance of a conflict of interest (which is a higher standard than most investment firms require) is an ethical standard that the investment community should follow more often.
I strongly caution investors from buying any stock on jacked up near-term expectations. Frankly, I see no reason why this quarter should be much more than what TMTA's mgt said they expected in their last conference call. Setting expectations for a company beyond what management sets is a dangerous game that risks hurting new investors and damaging the market's integrity.
For now, I think it's best that TMTA's stock price be based on management's near-term revenue expectations. I set what I think are reasonable stock prices for those revenue levels are in msg#21619. I have used high price to revenue ratios because TMTA's fabless strategy, i.e. partnering with Taiwan Semi, will allow them to ramp up productin much faster than semiconductor companies have in past cycles. Anticipating what mgt will say about the future is the art.
Even models with perfect foresight don't get short term stock prices right. But if you can't judge valuations better than the market, you'll lose vs an index fund over time (except for good market makers).
Once again, my thanks to all the great posters on this board. Good luck to all longs.
Senjenpa
AI
