TMTA is a turnaround story, in brief they used to be a dotcom bubble stock, with the company focusing on designing/manufacturing low power processors to compete with Intel (and later AMD). That didn't really get them very far, since competing with Intel is an extremely difficult proposition, but it did provide them with a portfolio of IP relating to low power tech. The reason for the turnaround is that the company is now focusing on licensing their low-power tech to other companies, essentially a higher margin business model that is quite similar to that of RMBS. Companies licensing their tech thus far include NEC and Fujitsu, the company is also currently doing work for Sony and some sort of secret project for MSFT (if you look at the last quarterly report, the MSFT item has most of the details obscured for confidentiality reasons). So, as I mentioned previously, I picked this stock for a trade for technical reasons (had also done so in early August), it has been on my watchlist for a little over a year. Also, as I mentioned, part of me taking a long position is fundamentally motivated, I would suggest taking a look through their last quarterly report to go over the numbers and get a sense of their business. This would currently be a high-risk entry point though going into earnings.
what is the "secret" MSFT news. msft is a software firm and they make chips or did make chips. I bet you the stock goes right back to $1.25 tomorrow.
You must think that I'm some sort of random Yahoo board pumper eh? Please see Exhibits 10.22 and 10.23 of the 10-Q Quarterly report (they are located near the end), released August 15, 2005, for the pertinent information: http://investor.transmeta.com/EdgarDetail.cfm?CIK=1001193&FID=891618-05-621&SID=05-00
I believe we are involved in this topic to post relevant facts regarding TMTA and their turnaround. Speculation involving rumors is for Yahoo's Message boards and not for ET Forums. Considering consolidation occurred around $1.25 TMTA would have to miss or lose a contract for it to return to those levels. Another piece of the puzzle will be provided to us at 4PM. I don't see it retracing that low. maybe 1.50's but we'll see.
Looks like that was a wise move on your part, but then, hindsight is perfect. I haven't had a chance to listen to the conference call yet, may not do so until the weekend. I took a look over the quarterly financials, and I find the results somewhat ironic. More specifically, I was actually expecting this quarter to be break-even, with better revenues for 4th Quarter. Instead, this quarter was very good, and the guidance was not so good. Another point of irony here - I believe that this is the first time the company has provided forward revenue guidance at time of quarterly release while I have followed the company, usually they have just been commenting on expected cashflow results. One interesting thing is that the quarterly results seemed fairly baked into the pricing of the stock, which is different than the previous quarter. Stock traded down in AH to around $1.41, going to be interesting to see how the stock trades during the days to come. I'm probably going to put in a stoploss around my original entry point for the moment.
Update - I just took a look over the stats for afterhours trading, something doesn't look quite "right" to me. Total volume AH was about 1.5 million shares, stock was down 14% AH. I wonder if AH movement was somewhat of an overreaction, I want to see a couple of days worth of regular session trading before I will start to draw conclusions.
I don't see any prints at 1.25 I sold 2/3s of my position yesterday in the aftermarket. Holding the last 1/3.