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Technology Stocks : Spectrum Signal Processing (SSPI)

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To: Pringles who wrote (110)7/25/1997 2:15:00 AM
From: ECAC Hockey   of 4400
 
Larry, I agree with you 100%. As per earnings, I would like to see 0.10, but would be satisfied with 0.05 if the difference was spent on increased R+D. The company has stated they have major development efforts underway in support of C6x. Hardware, software, and particullarly ASICS all cost lots of money to develop. How much this will effect EPS I do not know, but shareholders should fully support these company initiatives as they will provide major returns in the future. SSPIF management is very frugal and you can be confident R+D money's are well spent.

IMO 0.05 or 0.10 is peanuts compared to what this company will be making a year or two from now, and trivial compared to what they will be making several years from now. An old adage of investing is to buy the industry leader. SSPIF is the leader in the DSP Solutions industry, which is the industry of the future. Plus the stock is priced lower than that of its second tier competitors. What else can you ask for?
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