Jim,
I own some PRDM but am not a broker or SRAM expert. Most of what I know about the company I leaned from the newswires and their investor relations firm (they have a nice package). As you said, they are a niche SRAM player rather than a commodity producer. So far, unlike the others, they are apparently not experiencing the falling prices, due I believe, to the proprietary nature of their chips. Thay are the leader, or at least one of the leaders in the high speed (sub 12 nanosecond) high density SRAMs. These chips have desirability among the communications market (e.g., USRX, MOT), which is a good market to be in right now. They make 1 meg & 4 meg SRAMs (as opposed to the "commodity" 256K SRAMs). They are very small c/w some of the others (e.g. IDTI). Their stock price has taken a bit of a hit recently with the other SRAM makers, due @ least in part I believe, to an identity problem. That is, I suspect that not all who follow this company fully appreciate their "niche" position. They are supposed to earn ~ $1.67 during the fiscal '96 (chk this yourself) year, which means their p/e WILL soon be 7-8 like the others, unless their share price rises from current levels. One other little note - They have apparently received a letter from IDTI threatening litigation over patent issues. Their investor pckg discloses this but says they believe it to be without merit, etc... I suspect in this business, companies are always threatening each other over these sorts of issues. I like them because of their niche position and target markets.
Don |
