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Is Pixelworks A Pump?

|Includes:Pixelworks, Inc. (PXLW)

To anyone interested in Pixelworks (NASDAQ:PXLW):

Since my SeekingAlpha piece went public, there's been a lot of up and down action in the stock. As far as we can tell, most of the volatility has stemmed from day traders battling over whether PXLW is a winner or not.

For the record, we have done a great deal of research and believe that it is indeed a winner. However, investors are entitled to bet as they wish. We don't get involved in what the day traders do. That's their domain.

Over time, a stock usually goes where it deserves to go. Thus, I caution investors against listening to anyone who 1) tries to "pump" the stock or 2) calls the stock a pump without providing specifics (a.k.a. a reverse pumper).

We have found no evidence that "pumpers" are involved with this stock -- just my articles on SeekingAlpha / PoisedToTriple. Of course, "Poised To Triple" sounds like something a pumper would use, but that's why I chose the name. It's my way of saying, "There are real companies with a real shot at tripling...but it requires a real analyst to distinguish them from the pumps."

That's where my team and I come in. I've been involved with stocks since the mid-80s and a publicly-known technology analyst since the mid-90s. You can find more info about this on my web site. You can also find personal info about my life as a track athlete, coach, and author via Google.

Now, to be clear, that doesn't mean PXLW will triple with surety. About 20% of my picks don't work out (see my history of SeekingAlpha wins and losses here). However, we believe PXLW has a good shot to triple for several reasons. Investors who are fixated on iTV didn't read the rest of my article. iTV is a possibility and would represent a major coup. However, PXLW does not need to win iTV to triple.

The most tangible merits of PXLW revolve around the following:

1. Their IP business seems to have bottomed and is now ramping back up. The market seems to be moving in this direction because it creates cost efficiencies.

2. Its projector business is expected to gain substantial market share next year, thanks to a major customer win / project in process.

3. A successful activist shareholder (Becker Drapkin - look them up!) has been providing guidance to the company. They have a great track record for unlocking shareholder value. Most recently, they oversaw the buyout of Hot Topic (another stock investors doubted, until they were bought for $600 million).

PXLW management team, its earnings transcripts, and SEC documents will confirm each of our points (I've provided much of the heavy lifting for free on PoisedToTriple). In short, this is a real company with a real history…and it's working on a building a strong future.

This is the key difference between a pump and a speculative stock.

I encourage anyone interested in PXLW to read my research, do your own homework, then decide for yourselves...and be careful who you listen to. There are too many pumpers (and reverse pumpers) in this world. You don't want them to stop you from finding the winners.

Kindest Regards,

Mark G.

Disclosure: I am long PXLW.

Stocks: PXLW