If you're daytrading it, ask Zeev. If you're thinking long term, then below is few posts by respectiful poster at Yahoo that can give you some guidiance.
For me, I'm still holding my but ready to get out.
"When Paul Russo was running Genesis, gross margins used to be in the 55% range.
When Amnon Fisher took over, two and a half years ago, he deliberately lowered gross margins to 45%, to gain market share.
A year and a half ago, I used to post regularly that 45% GM is too low for a consistently profitable business.
Little did I know, those were the good old days!
Gross margins now are 31.5% in the flat panel monitor business! (The 52.3% GM in "other" pulls the overall GM up to 35.6%).
Another 6% of price declines are predicted for the Dec quarter, as an improvement over the 9% decline in the Sep quarter. Unfortunately, a 31.5% gross margin cannot tolerate any price decline.
Improvements in the March quarter are promised, with the elimination of the inventory overhang,begging foundries for reduced wafer costs, and increased 17" chip sales. But getting the GM in the Flat Panel segment up to, say 35%, is still not enough.
In my opinion, the ITC has to drive the Taiwanese competitors out of the market. Chip prices for the basic 15" analog have to increase!
Or the consumer video ("other") segment has to quadruple into a profitable, 50%+ GM business.
Then Genesis can walk away from unprofitable Flat Panel business, be happy with a 30% market share which makes money, versus the present 65% money loser."
"You are making some good points: in the Monitor business they made nearly 10% pre-tax profit on 31.5% gross margin.
However,in the quarter, they had a 17% drop in blended ASP, due to a 9% reduction in prices, and more 15" analog chips in the mix.
Another 6% decrease in prices is predicted in the Dec quarter.
Clearly, the unrelenting drop in prices cannot be matched by cost reductions. The price drops have to be stopped.
R&D in the monitor segment was only 8.4% of revenue. Is that enough to keep the lead and market share?
What I am afraid of is that if the present trend continues, Genesis will be near break-even for the foreseeable future, even as revenues grow: a few cents pro forma profit, few cents of GAAP loss.
Not enough for the stock to keep rising. "
