Wolfson

I've seen shares fall on good results before but this is just silly!

Surely this has got to be a buying opportunity!

Financial Highlights

Revenue increased by 94% to $56.9m (H1 2003, $29.3m)
Gross margin improved to 50% (H1 2003, 46.4%)
Profit before tax increased by 123% to $9.3m (H1 2003, $4.2m)
Diluted earnings per share increased 94% to 5.77c (H1 2003: 2.98c)

Operational Highlights

158 design wins in the period
9 new products introduced in the period
Continued strong uptake of products by major OEMs
Increased sales in Japan and Korea to 29% of group turnover
31 new technical and commercial staff

Behind the figures there is a court case going on in the States on patient
infringement and it is costing, plus debt level is not low, a couple of
factors possibly worth keeping an eye on. I got the scant details above
from the PDF version of the company report on their website if anyone
wants to research them further it is easy to find in the investors relations section.
http://www.wolfsonmicro.com

Thanks stockbunny,

I've been searching for info like that before before deciding but you got there 1st.

I think I probably will buy for the long term with hopes of a short term rise as well.

Good luck with it Apple!

Thanks,

Still deciding.

Times Link

July 27, 2004

The Times

Tempus


Wolfson Microelectronics

INVESTORS in technology stocks are a flighty bunch. And who could blame them? After enduring a traumatic meltdown in the high-tech sector, it stands to reason that they would be a little gun-shy. So it was hardly a shock that Wolfson Microelectronics, the biggest tech flotation last year, dived in value yesterday after giving warning that the Chinese market for DVD players may grow more slowly than it thought in the second half of the year. After all, China accounts for at least 10 per cent of Wolfsons annual sales.

Wolfson, like ARM Holdings, specialises in designing microchips found in many of the most popular gadgets on the market. Its technology converts analogue signals into digital ones understood by computers. This is a growth market and is prone to swings in trading conditions.

But Wolfson is different from many of its peers in that it makes a profit. Some investors may be disappointed by the companys more cautious outlook for sales in the second half. But even with a weaker sales outlook in China, group sales growth is likely to exceed the 94 per cent leap it made in the first half. Critically, the company is also lifting its gross margins a key measure in the microchip market faster than expected. Wolfsons shares are now back at the level at which they were floated last year and trade at 19 times 2005 earnings per share. That is a modest multiple for the microchip market, which includes peers that are growing far more slowly than Wolfson. Buy.

Times Link

You think it will go down some more before it comes back???

Crazy really, how good did people expect the results to be???

Looks worth the risk, I am in with just a wee flutter....

Good luke to all in....

I think this is drop is due to similar sentiment attached to it as Telecom Plus Bespak, Traffic Master, Retail Decision etc. My feelings are, (Hopes) are that there will be equally rapid recovery when the market find its direction again. (I again hope up^^^) Dump Bush and B Liar and perhaps the economies and markets and political scene may settle a little.
What effect will Yukos going belly up have on the market.

I'm in!

There were some big sells earlier but the price has hardly moved.

So I'm guessing that we have found the bottom.

not yet. Catching knife comes to mind

Good call Snip, falling knifes are hard to catch and often end in tears, that why I called this one a wee futter :)

I will stick to my normal rules, and if it heads the wrong way and gets to my jump out price I will take the hit and curse my stupidness :)

Simon

Snip & simonpaynton,

You may be right!

I was hoping for a bounce this morning but it didn't happen & the more I look into the patent dispute, the less I like it.

With most pundits predicting a general fall in the markets as well, I'm even more nervous about it.

Sooooo, I've sold most most of them at a small loss.

& a small regret rather than a big regret.

Simon+ If you have a look at the intraday candle chart for to-day it would seemed to me that you may have caught the reversal. Wait until the morrow.

Fred1new, the drop in share price does look like it has slowed (maybe stopped), but what shows that in a candle chart??? is it the flat line??? With any luck this may have reachead the bottom.... I really hope so, I aint had much luck these last few months..

Simon

The problem I seemed to have at the moment is trying to think what a share should be doing, rather than accepting what it is doing. Any time I try to forecast from the charts of the shares I am interested in, the reverse seems to happen. Last night this share seemed to show possibillity of rising in the morning sun. Looking at the 2 day candles to-day there appears to be a power cut and the chart is heading south again. Watch for the reversal as I write this. The volumes are small.

Still think the drop in price is overplayed in regards to fundamentals and it will recover in the long term. I will continue to hold. May if I see the bottom buy some more. Watch out for directors buying.

I'm glad that I had 2nd thoughts.

BUT I'm still watching, ready to jump back in.

This is a typical fall after such a strong warning from the Company about future suppies.

Some weeks back, Institutions were buying strongly at 240 and got the price up to the 280's-290's. They must have done that with a reason in mind.

Prior to that and just before the end of year results the price was a bouyant 3 plus, but after the strong results for the year the profit taking happened and down it went.

I do not think that this will bounce back in the short term to any previous level in the near future. I think it will drift below 2 and not really know where it should be until such time as the Company are able to reassure that the suppy problem which they foresaw, is surmounted, and who knows when that will be.

IMHO do not buy yet but wait for a turn around based on some evidence of this.

If I held now at a higher price, which I don't as I sold prior to the above, I would battern down the hatches and wait for the storm to clear.

DYOR

a gap down like this in candle charts is bearish. If you are going to buy then watch for good strong positive volume and preferably a bullish candle. When reading charts it is important to be a detached, unthinking observer

(try printing a chart and turning it upside down if you aren`t sure)

Why buy something that is clearly in downtrend in the hope you have caught the bottom when there is no clear evidence that it has bottomed out.
Wait for it to turn and go into uptrend, on rising volume if you wish.
So you may lose a few points in doing so but you will sleep at night, smug in the knowledge that you are immediately into profit. Bottom fishing is very dangerous. You will lose more than you win.

and the important clue was in the bearish candles at around 220. Prices had tried to go higher but were rejected