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Mark Gomes
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This profile, along with Mr. Gomes' investment methodology and article on "Tripling Your Money" ( are required reading to understand how Mr. Gomes' researches and trades his picks. His updates are communicated via his Seeking Alpha Instablog/Articles/Comments and... More
My company:
Pipeline Data, LLC
My blog:
The Pipeline Data Newsletter
My book:
Faster Than Forty
  • Beware Of Who You Trust ! 7 comments
    Aug 7, 2013 7:54 AM | about stocks: PXLW

    Tuesday night, Pixelworks (NASDAQ:PXLW) provided guidance that sent the stock up 40% in after hours.

    In order to gain your readership and TRUST, I work hard. I provide you with insights utilizing 20+ years of doing real analysis. This has led to this year's amazing money-making calls, like my prediction that Himax (NASDAQ:HIMX) would be incorporated into Google Glass.

    From time to time, someone will come out and counter my analysis. I have no problem with that! I'm right most of the time, but not all of the time. Because of this, I am always open to hearing other opinions and of course, FACTS.

    The problem is that many people take short-cuts in their analysis...or even spread lies intentionally. As a result, they put you at risk of making an uninformed decision.

    I witnessed the latest case of this last night when a member of StockTwits posted the following falsehoods regarding the Pixelworks (PXLW) conference call:

    (click to enlarge)

    Here we have four posts and I have an issue with each of them:

    Post #1 ""*while future growth is muted*, we see revenues up more than 50% in Q3 and non-GAAP profitability for the balance of 2013"

    I'm not sure what conference call he was on, but it wasn't Pixelworks'. I was ON the call...AND read the transcript (via an accurate service I pay $1,000s for)...AND listened to a reply of the call.

    THIS is what the CEO said:

    "While Q2 growth was muted, we see revenues up more than 50% in Q3"

    Post #2 People buying "non-GAAP" profitability and a couple quarters of channel fill here. The details matter, people.

    I agree with one thing: Details matter. First of all, non-GAAP profitability is universally accepted. Any good analyst knows the difference between GAAP and non-GAAP, so this comment is irrelevant, but posed as a negative. Secondly, the UltraTV cycle will last for years. It's just getting started, so calling the PA168 ramp "channel fill" is dubious to say the least. Finally, PXLW management stated that they will be profitable for the remainder of the year (Q3 and Q4) AND experience a ramp in market share starting in Q1 and continuing throughout the year. That sounds like more than a couple quarters of channel fill to me. What do you think?

    Post #3 50% QoQ growth in revs does not even put them at last years numbers!

    Ummmm, yeah...but who cares? EVERY company in the midst of a turnaround is liable to hit rock-bottom revenue levels before things get better. Q1 was rock bottom for PXLW. Q2 was stronger than Q1, Q3 will be through the roof, and there are clear signs of continued growth ahead (see my comments above). Stocks are based on FUTURE growth, not the past. Thus, this was yet another irrelevant "scare comment".

    Post #4 currently trading at >30 forward after this pop. CEO states "future growth is muted" in CC! I'm going to ride up, then short hard!

    Here, he restates the false CEO comment and makes one final scare comment. In my meticulously researched write-ups on PXLW, I explained that Pixelworks has a cost structure that allows a generous % of each extra revenue-dollar to drop to the bottom line. To see the impact, check out the second to last paragraph of my latest write-up (released last night).

    The Bottom Line: I'm ok with hecklers and always invite counter-points that challenge my view. However, it upsets me when people make careless statements. They muddy the hard work I do for you and leave you wondering who to believe. Worse yet, when I have to defend my research against sloppy (or malicious) work like this, it takes time away from finding my next pick for you.

    If that makes you angry, I don't blame you.

    For the record, I'm not angry. I've been doing this since the mid-90s. This kind of stuff was happening way back then...and it'll be happening 20 years from now.

    FYI, I'm not a fortune teller, so I can't tell you where PXLW stock will go today, tomorrow, or next week. HOWEVER, I can work hard and give you the FACTS to help you make good decisions.

    In my never-ending quest to provide you with facts, I was on PXLW's live conference call, reviewed my notes, and wrote until 11PM. I undertook this six-hour process to save you a ton of time!

    I do the work and you get an article that takes 2 minutes to read. This is what I do to earn your TRUST. It is very clear to me that other do not do the same for you. So, before you go listening to anyone, make sure they do the same.

    You deserve no less.

    Disclosure: I am long PXLW.

    Stocks: PXLW
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Comments (7)
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  • calyard
    , contributor
    Comments (114) | Send Message
    And I for one very much appreciate your hard work and efforts. Thank you....
    7 Aug 2013, 07:58 AM Reply Like
  • tampat
    , contributor
    Comments (1400) | Send Message
    Ditto calyard
    7 Aug 2013, 08:09 AM Reply Like
  • Mark Gomes
    , contributor
    Comments (3196) | Send Message
    Author’s reply » Thanks folks. BTW, please remember that Likes, Retweets, and Shares are how I "get paid", so show me some love and be sure to subscribe to my free newsletter at Cheers!
    7 Aug 2013, 08:16 AM Reply Like
  • allstar0088
    , contributor
    Comments (408) | Send Message
    Thats what I call putting the smackdown on FUD. Thank you Mark. Your HIMX pick was also spot on.
    7 Aug 2013, 09:10 AM Reply Like
  • Patrick McKinnon
    , contributor
    Comments (27) | Send Message


    Keep up the good work ! You provide excellent insight and I appreciate the time and effort you put in to your articles.
    7 Aug 2013, 09:13 PM Reply Like
  • gilzy
    , contributor
    Comments (12) | Send Message
    Very much do respect your honesty..You just gained your newest follower who is willing to listen and learn..Im in on HIMX...Thank You
    8 Aug 2013, 10:35 PM Reply Like
  • Mark Gomes
    , contributor
    Comments (3196) | Send Message
    Author’s reply » Thanks everyone. My goal is to educate everyone on what to look for in a trustworthy AND professional analyst. That means the same thing it means in the medical or legal professions. It requires a college / post-collegiate education and on-the-job Wall Street experience.


    If you're dealing with someone who doesn't have this, you may be selling yourself short.


    We're currently adding talent to the Pipeline Data and teams. Wall Street experience is a requirement!
    9 Sep 2013, 11:31 PM Reply Like
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