It's not hard to understand why some investors are excited. The market for advanced TVs is forecast to grow by 30% annually through 2010. Furthermore, Yahoo! Finance lists Trident's forward P/E at 14. But determining forward P/E ratios is a lot like forecasting next week's weather -- you basically take a look around, then make your best guess. We do know that Trident has strong positions with powerful companies in the TV business, including Sony
My main problem is that I doubt Trident's differentiation is durable. It has a lot of competitors, and these companies get a new chance to compete every year when the TV manufacturers design their new products. Trident has to shine again and again and again. Although some of its competitors, like Genesis Microchip
I certainly don't want to talk you out of your Trident shares, provided you have a good understanding of this company, and how its management team and products will continue to keep the competition at bay. I don't have this full understanding, so Trident looks like a risky stock to me.
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