Anadigics is an example of the volatility inherent in tech stocks, and also of the merit in buying good technology. ANAD doesn t fit the traditional definitions of quality, but it had great technology plus some other assets, and that saved the day. We now have a decent gain from our recommended price and a giant gain from the subsequent lows where we urged subscribers to accumulate. The company is again firing on all cylinders, as the product lines have recovered one by one. Earnings were 16 cents a share versus break even.
All production is now in the new, lower-cost fabrication plant.
Despite some normal competitive price pressures, the future looks bright. The current price has discounted some of that future, however, so do any new buying on corrections. The same goes for Atmel , which just reached a new all-time high on news the stock would be split two for one. That s a measure of the current market, but also reflects the promise of new technology, such as the new media access controllers Atmel has just introduced for wireless networks. MMC Networks is a reminder that sometimes the other shoe still drops.