I've followed OmniVision Technologies (Nasdaq:OVTI)
for quite a while now, but I've never owned the shares. In a nutshell,
OmniVision seems to fit into that “it's more trouble than it's worth”
category of stocks where severe operational volatility (that I don't
believe the company really can or could do much to control) leads to big
swings in the price. That may be fine for investors/traders who like
active names that produce multiple trading opportunities for buy/sell
moves within a year, but it is much less attractive to those of us who
pursue an investment path of “enlightened torpor”.
With that, OmniVision's fiscal first quarter (and guidance for the
second quarter) was really just more of what I've learned to expect from
this company. While I do believe OmniVision has good technology and a
solid market position relative to the likes of Sony (NYSE:SNE) and Samsung, it's just such a difficult market to prosper in, particularly with the turbulence in the handset market right now.
Read the full article at Investopedia:
http://www.investopedia.com/stock-analysis/083013/omnivision-technologies-beating-goes-ovti-sne-atml-avgo-brcm-aapl.aspx
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