Wednesday, April 11, 2012

Investopedia: Can Surveillance Save Vimicro?

By and large, tiny chip companies just don't make it - they lack the resources to keep up in R&D with the major chip companies, and large multinational companies are hesitant to trust key sockets to an unproven player. Factor in the additional risks that go with investing in small Chinese companies, and it is not hard to see why tiny Vimicro (Nasdaq:VIMC) has been all but forgotten by the market. It is worth asking, though, whether the development of the Chinese video surveillance market could yet make this a long shot worth considering.

Punting Mobile and Under Pressure in PCs
Vimicro's traditional business is in producing multimedia processors/controllers for PCs and mobile phones. More to the point, while companies like OmniVision (Nasdaq:OVTI) make the actual image sensors that go into PC-based webcams, Vimicro's chips handle more of the "back office" work for those webcams.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2012/Can-Surveillance-Save-Vimicro-VIMC-TXN-AAPL-HPQ0411.aspx

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