Cool Post From Motley Fool
boards.fool.com
Author: makbruzer
Date: 9/12/00 1:14 PM
I've just spent a little time reading all of your messages. I originally put this stock on the boards last fall after they went public. Sorry for the lack of attention, but I'm long on these guys and haven't had the time to get in on the daily debates. Don't know if those early messages are still there, but I included some background in them. I've been aware of these guys for over 5 years and bought a week after they went public last fall. I work in the OEM flat-panel industry and have a fair amount of insight. I'll recap here real quick.
As you know, SIMG primarily builds the PanelLink chipset for a digital video link between the PC and (initially) digital flat-panel monitors. This digital link has been in limbo for the past 5 years (at least) due to the lack of a widely-accepted standard. There was Plug&Display, DFP and now DVI. DVI seems to have the most momentum right now, with Intel, Compaq, ATI, 3DFX, and others all jumping on board. One detail - regardless of which standard wins, they ALL use the PanelLink chipset, so SIMG is destined to win regardless. What will continue to extend this market is that the CRT makers are also adopting the DVI interface to provide digital CRTs which will greatly expand SIMG's available market so they do not have to rely solely on the higher-priced LCD-based monitors.
Also, they have incorporated High-bandwidth Digital Content Protection (HDCP) into their chipset which will speed their entrance into the consumer electronics digital video sector. Once HDTV hits the mainstream, they'll be positioned to exploit that market. The chips could be used with DVD players as well.
In addition, they have announced their entrance into the serial ATA market. This interface is a serial upgrade to the existing parallel ATA interface that currently exists between the motherboard and the hard drive in every PC. This will further expand their potential market.
Sorry for the long wind, but I am extremely bullish on these guys over the long haul (3-5 years) as their technology and future markets continue to mature. All it's going to take is for them to officially hit The Street's radar and they'll be off to the races. I'm already up over %170 since last October.
One final note: When the DVI interface does mature, the current analog interface will slowly start to dry up. Companies like PixelWorks who make a living providing solutions for the analog-to-digital conversion that is currently needed for LCD-based monitors will have a tough time if they don't come up with something else to sell...
Makbruzer |
