IDTI - Dark Horse For '96 ? Message Board

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Technology Stocks : IDTI - Dark Horse For '96 ?

IDTI 48.99

0.0%

Mar 29 5:00 PM EST

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To: Liz who wrote (781)	3/4/1996 10:42:00 PM
From: Joe Wagner	of 1139

Liz, Since you mention LSI, it is my largest position by a large margin. SIII and IDTI are my only other semiconductors and very small positions. Networking companies are my other favorites. Let me ask you a couple questions. What % of sales do you think the new Mips processor R5000 will contribute to IDT's bottom line this year? It looks like a great chip. Twice as fast as the pentium pro and a quarter ofthe cost. Also the Wideband Networks like @Home are stating that the way they will make their networks dependable is by using large amounts of Cache spread all over the country to store heavily used data. Does the SRAM that IDT makes fit the bill? Is it possible that there will be a greater demand than expected for SRAM due to network expansions. I was reading in Electronic Buyer magazine about an architecture for I think it was UMA that was more effective by spending less on the CPU and paying $30.00 for SRAM instead of $60 for the better CPU. Any comments on this? The stock held up extremely well today. It has a very high book value compared to its current price. Its earnings over the years show consistency and are not erratic. This company looks very solid to me. I would quite amazed if in two years it was not trading for at least $20.00. Of course most people will need to see the turnaround in short term earnings before they buy and by that time the price will probably be at around $15.00. The greater the risk the greater the potential return. I don't think it can go much lower unless the short term outlook gets even worse which is highly unlikely. Compaqs starting a price war will only fuel sales of computers, and as consumer confidence rises the intrigue of the internet ( everywhere you look now days, you are bombarded by web addresses) will lure in even more, curious consumers. Phone companies and cable companies will march forward advertising more reasons for us to join the internet crowd and find out whats going on there. I only see reasons for market improvement once we get past the next quarter. If the engines of supply are cranking furiously right now then it make take longer to recover. But it seems the dropping prices will cause companies to pull back, inventories will shrink and when demand comes back we will have balance and earnings will stay strong. If this is wishful thinking then maybe the internet is just pipe a dream that a few nimrod computer nerds will use to discuss the intricasies of binary code and machine language. After all they said TV would never sell when it first started, what in the world would you use it for. History repeats itself, but as it does so it never repeats itself exactly the same. I guess we will find out this summer what the future holds. Good luck in your investing! Joe

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