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Technology Stocks : CATS - Catalyst Semiconductor
CATS 25.89+1.6%Jul 2 5:00 PM EST

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To: Winner Victorious who wrote (175)1/26/1996 11:36:00 AM
From: Joseph wang   of 231
 
Winner, few more comments on XICO.

A 700% rise from 1994-1995 should put the stock at $14 right?
And at a PE of 20, and earnings of .53/share...it should be
at $10 5/8 right?

Well, unfortunately, No.

I think the insider selling confirmed that the stock would not
reach these levels. The insider selling I believe are for the
following reasons (which may also be why XICO isn't at $10-14):

1) company issuing stock soon for R&D and expansion
2) company will be under price competition as was SRAM/DRAM last yr.
3) company is only expecting 20% growth in revenues (compare that
with ACTL's 43% and XLNX's 35%)
4) company cannot and will not be making 700% earnings by next
year.
5) company's limited capacity will hurt their profits and require
the company to use its available funds.
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