Rob, that is a good post, except for the first statement, "There is a lot of excitement about IDTI's prospects that are already in the stock." Assuming you mean, "factored into the stock price", I respectfully take issue - I don't think the market has any idea how to price this stock reasonably.
I mean how do you price a company in transition from commodity products to cutting-edge higher margin products in bigger markets.
And, how do you price a company that is on the leading edge of a surge in earnings?
You can't price it reasonably because there is no sure category to place it in and draw comparisons. They have new and older fabs, distribution, R&D, microprocessors, memory products, logic products, FPGA alternatives, and more. What company can you compare them to? Is 16-1/8 a reasonable price? Compared to Cypress it is. Compared to Intel or VLSI or Altera it is not.
Rob, your points are excellent. I hope the price continues to appreciate, all by itself or propelled by one or more of the factors that you list. |
