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My question about the Japanese shipments is: Will this make next quarter look better than it actually is? If so, might we set a sell limit order to cash in on overexuberance after the numbers come out?

I'm not sure what you mean by 'making next quarter look better than it actually is'.

Do you mean making next quarter the same year-ago quarter? If so, I think the answer is 'yes'. Here's what the company had to say in the release:

...shipments will be concentrated in the March quarter this fiscal year, versus the December quarter last fiscal year. This change in timing better aligns product shipments with the peak seasonality of consumer purchases in Japan. Consumer purchases overall remained strong in CNS' international markets, including Japan.

http://biz.yahoo.com/prnews/040122/cgth063_1.html

You can use a sell limit to try to capture exhuberance if you want to, but I won't personally be doing so. First, this impact will be fully anticipated - so the market should price it in ahead of time. Now, the market can be irrational at times, so I can't say for sure, but I would think that it shouldn't contribute to any kind of big jump in share price when the numbers are released next quarter.

A lot of people use sell stops and sell limits, and there are a lot of good reasons to do so. That said, I personally do not. When a release comes out, I want to have the time to at least read it, sort out what it means, see if there are any surprises (good or bad) and make an informed decision whether or not selling at a particular price is a good or bad idea. With a sell limit, I am making the decision as to what price I'll accept in advance of reading the release. In my view, this isn't the most well-informed decision I could make, so I don't make it. Again, there are a lot of good reasons to use such orders so I am not being at all critical of anyone who does. This is simply how I approach that question, and what works for me personally.

Regards,

Eldrehad



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