DSPG (Digital Signal Processing Group - an Israeli company
listed under `Miscellaneous' in this web site) is the leader
in speech compression. DSP Group's technologies and products
have been adopted by industry leaders including: Sony, Sharp,
Panasonic, Philips, Siemens, Microsoft, Intel, GEC Plessey,
Matra, Alcatel, British Telecom, U.S. Robotics, and others.
At less than $10, with a PE of only about 10, DSPG looks like
an incredible bargain. For instance, the PE of comparable CUBE
(the leader in video compression) is more than 100. It's fun to
note that DSPG's graph currently resembles CUBE's in March 1995.
Digital signal processing (DSP) in general has a bright future.
For instance, Texas Instruments plans a $2 billion DSP factory
in Dallas, although the worldwide demand for semiconductors,
especially computer memory chips, is slowing. ``Demand for DSPs
is sufficient that TI is building at a good time, even if there
is a softening in the semiconductor market,'' said Morry Marshall,
an analyst with In-Stat Inc. In the last year, the $1.7 billion
world market for DSPs increased by more than 60 percent. The company
expects the market for DSPs to top $12 billion by the end of the
decade. The chips are used in everything from computer hard drives
and modems to cellular telephones. And DSPs soon will be used in
home electronics such as video-cassette recorders as well as for
emerging technology like video conferencing, predicted Engibous.
DSPG should greatly profit from this emerging market. But they
will have to wait for a while until its numerous licensees start
shipping. Therefore, DSPG is currently focusing on its own chip
production, while waiting for a significant license stream.
Any thoughts on DSPG? |
