Could AMCC Continue to Grow Their Product Line?

[christopher]

If a sale of AMCC is not on the minds of it's management team,

what else could they be working/expanding on?

A 96-core chip is supposed to be unveiled within the next month.

Also,

With X-tend, AMCC has already added value to an item that was previously produced, X-gene.

Is there anything else relating to AMCC's product line that could become a new product for AMCC in the near future?

How else could AMCC grow the market they are in?

The reason why I ask all of the above is:

Is AMCC at it's prime to be acquired? or does it have more growth to uncover, by expanding it's product line?

[Admin]

If they can do what they say they are going to do, then they might be able to go it alone, although INTC is some pretty stiff competition with very deep pockets. INTC thinks in terms of billions, not in terms of the (tens of millions) specialty markets that AMCC is carving out for itself. The short answer: I don't know. I think hiring McDurmot was a clear signal though.

[Admin]

The problem is the macro environment. The world economy keeps getting worse on a daily basis.

[Admin]

One day until the call.

[christopher]

phobos,

I believe the call is scheduled for January 28, which is Thursday of NEXT week.

Hopefully the market has finished this correction by then.

The share price has held up quite well recently, considering. Even though we dropped down substantially over the last couple of weeks.

Well, someone is having a little faith in AMCC this afternoon.

We are now up .20 and being green is better than being red!!

[christopher]

close to 4:00 PM ET and we are now up .37 @ $5.58 share.

All from a day's low of $5.07 share.550,000 shares traded

1. Is money finally rotating into AMCC?

                or,

2. maybe the share price is being propped up by a large share holder before  another huge sell off  hits ?

Let's hope for #1, that money is beginning to rotate in before earnings

[Admin]

Oh my God Chris. You're right! One week until the earnings call. I hope I can wait that long.

My feeling about the share price decline and volatility is that both are hallmarks of no one being able to price these new products in a new market, even though a down economy may actually increase the sales of low-cost alternative solutions, like ARM server chips with their low total cost of ownership. Investors are probably worried about INTC too, but INTC hasn't stopped ARM from owning the mobile market at all. Will this be another case of ARM eating INTC's lunch through AMCC (like it did through QCOM in the mobile market)? Maybe.

The other major issue is the macroenvironment. The unlimited never-ending stimulus just ended, so resources will have to re-align themselves with applications of higher marginal utility. Hopefully the idiots at the central banks just let the business cycle run its course and the idiots in Washington streamline regulation in the service of boosting the broader economy.

The macroenvironment is the big wild card here.

[christopher]

Looks like we are in the green again today!

up .15 @ $5.68

Maybe we will gain some traction before the earnings call next week !

[christopher]

Up .22 at the open this morning $5.80 share.

Would be nice to break $6.00 going into next week. Maybe???

Is the correction over?

[Admin]

"Would be nice to break $6.00 going into next week. Maybe???"

Given the trend, it seems like we may see AT LEAST $6 by the call.

[christopher]

I know I already stated this but,

I continue to have some hope that Needham and Co. is going to put out a news release, stating that they have an analyst who will now be covering AMCC with a particular price target. maybe something like $16 (I know that's a stretch)

The opportune time for this to occur would be within the three days before the earnings call: 1/25, 26,  and 27.

I find it very unusual for AMCC to take part in Needham's Investor Growth Conference when at the present, Needham and Co. has nothing to do at all with AMCC. Hopefully this will be changing next week (I know this is also a stretch) A quite possible stretch!!

[christopher]

At least we are in the green today.

Would have been nice if we were knocking on the $7.00 door instead of the $6.00 door.

We need volume! there is hardly any volume at all running the share price.

[Admin]

Why not $8?

Well, if the markets settle, there could be many people on the sidelines with a lot of money.

[christopher]

so much for a run up going into earnings. AMCC  down over .20 today!

I agree and hope you are right pertaining to the money on the sidelines possibility.