by Kris_Tuttle on November 30, 2011

OVTI is down sharply again off a strong quar­ter but big cut in for­ward guid­ance. I’ve never cov­ered or even owned OVTI. They have a strong posi­tion in a growth seg­ment of semi­con­duc­tors (cam­eras) and have done well in many ways as a com­pany. But the prob­lem with OVTI is the same prob­lem that exists for MU (at least for the last decade or so) — mar­gins are low, cap­i­tal needs are high and their cus­tomers view the prod­uct as a com­mod­ity. We wrote about the issues we had with mem­ory back in 2007 (Strug­gling with Mem­ory) and the chal­lenges fac­ing a cycli­cal indus­trial player like Micron in 2010 (When will Micron buy into some growth?) OVTI seems to face the same struc­tural issues.

CNN is fir­ing more skilled work­ers like edi­tors and pho­tog­ra­phers and leav­ing more work to “user gen­er­ated” meth­ods. They already seemed to be absurdly unpro­fes­sional and now the story will be com­plete. Pretty soon www.cnn.com will just for­ward to YouTube.

Long suf­fer­ing Affymetrix AFFX made a pretty big acqui­si­tion. $330M for eBio­science which is said to have $70M in sales at 70% GM with a 30% EBITDA mar­gin. Is it trans­for­ma­tional? AFFX has been in the sin­gle dig­its for 3 years and now trades at $4.73. Recently even the poster child, Ilu­mina (ILMN) hit an air pocket. Is the $100 genome a thread or an oppor­tu­nity for these companies?

AAPL looses some patent bat­tle to Sam­sung. Is it a trend?

AT&T is call­ing off the T-Mobile acqui­si­tion. Should be good news for VZ.

CRIS is an inter­est­ing small cap biotech­nol­ogy com­pany. They seem to be mak­ing head­way. The “hedge­hog” path­way shows some promise in can­cer treat­ments. Genen­tech is a col­lab­o­ra­tor on it. $250M mar­ket cap at $3.22.



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