Q3 ReflectionsAs Wanabdebtfree disclosed a position, I'll do likewise and share that I am long GND, and have been following this stock for a decade or so -- ever since Canadian Shareowner did a story on them way, way back when (at least, I think it was CS). I sold a bit earlier this year to offset gains made elsewhere, so there is an 'upside' to this stock.
Comments made about this co. turning the corner, or something good materializing out of all the cuts and renewed 'focus'... For me, the jury is out but I think it's close to returning with a verdict. This management team has had more then enough time to change direction, etc etc. But a $12 million drop in revenue compared to the same quarter last year? And this isn't a result of dropping divisions/LOB's -- this is pure decline in sales/revenue. And if you look at the pressure on GM, this seems to indicate that they're getting squeezed by competition and the cash cow of video is showing its age.
Yes, I know the market is down and the economy is rough, blah blah blah. But that appears to be coming to an end and I'm seeing rises elsewhere. Plus, since they've recreated themselves as an 'intellectual property company', how long can they attribute the GM squeeze on "lower production in Gennum operations". Wasn't that all out-sourced when they spun out the old audio division to Sound Design? Or am I missing something?