SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : IDTI - an IC Play on Growth Markets
IDTI 48.990.0%Mar 29 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Rob S.7/25/2002 3:36:57 PM
  Read Replies (2) of 11555
 
IDTI is now near being fair valued based on reasonable expectations. It should be a buy between the range of 9 and 12. If IDT rises to resistance at 20 in the near future it will likely become time to sell. Sales probably have bottomed but will likely remain down for semis in general and IDTI in particular for several quarters. Modest improvements in sales volume will only make up for declines in pricing due to aggressive cost cutting efforts of end customers who face the harsh reality that they are actually being expected to make a profit (for a change). Some possibility still exists for a year end rally but I'd give a strong rally about a 20% chance at best. Whether we get a 'January effect" rally early next year is still too far off to take any stab at.

Is this just irrational bearishness? I don't think so. Tech stocks have long been floated up because of favorable methods of accelerating earnings and discounting of market cycles and risks. Techs have been particularly aggressive users of stock options; some companies paying out 5% of their gross sales per year in the form of options. That is ridiculous even for profitable companies, let alone startups still trying to find solid ground.

I guess we've learned, hopefully, that valuations do matter after all.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News