This post was just published on ZYX Buy Change
OVTI is running down for two reasons. First in sympathy with Apple, and second on rumors that OVTI camera is not in iPhone 5.
The first reason is correct but the second reason may turn out to be wrong. Based on OVTI revenue projections, OVTI is either a second source for iPhone 5 camera or it has landed another major customer.
Only 10% is being held. Subscribers have two choices. Those who are short-term trading oriented may consider letting the stop hit and exiting the position.
Those who are long-term oriented but not willing to take the risk should also let the stop hit.
Those who are short to medium-term (as opposed to very short-term and very, very short-term) oriented and are willing to take some risk may consider suspending the stops at least for the time being. In the coming days, the stock will be subject to a lot of rumors and speculation related to iPhone 5. On negative rumors, the stock can easily spike down to $11 – $12 region. Those who chose this avenue should be ready to add to the position for the long-term on any big spike down. For tracking purposes this last option will be followed. In other words stops are being suspended and the plan is to add to the position on any spike down.
