As I mentioned Monday after the earnings, it appears $2.50 was support. We held it nicely yesterday after the relatively weak release of earnings and expectations. On the positive side, with revenues slated to be around 170m this 1/4, margins will be stronger to support the .03-.05/share income. Also, the company has no debt, and will be profitable in their historically worst quarter of the year. I sumised that the recent sell-off from the mid 3s to 2.70 or so, may have been in anticipation of a weaker 1/4. It appears at first blush that was correct, as the sell-off in real terms, wasn't that bad yesterday.

Given the support around 2.50, and the obvious valuation of a very profitable company in a growth industry, with over $1/share in cash, it appears we're seeing value investors step in and pick up some shares this morning. I think any negative news, if you want to call the lower guidance that, is out there. From this point forward, we should see a steady increas to the 2.90 or so level, where we'll run into some resistance.

The current level presents a nice entry point for the value investor, who's willing to give the stock a month or two to rebound. From this level, we should see about a 20% gain prior to next 1/4s release. Not shabby at all. I'll be adding to my position shortly.

Jobe