Phil, I spent a lot of time today looking over IMPX. Very interesting situation and perhaps a better play than most would realize. I like it a lot. Here's what I've dug up and please share with us whatever I might have missed or misinterpreted or whatever you care to add:
IMPX
website: impweb.com
contact: George Rassam, 408/434-1256
or
Morgen-Walke Associates (ANALYST)
Chris Danne, Jeannine Lewan, 415/296-7383
Vince Daniels/Deborah Szanjgarten, 212/850-5600/
212/850-5698
Let's start off with part of your post:
Five insiders including the Chaiman and the CEO bought in February at just slightly less than the current price of 1 9/16. The Chairman bought 100K shares, CEO bought 10K. Neither buy was related to stock options. The insider buying just pops out at you on the NASDAQ section of the 3/23 Insider Chronicle.
techstocks.com
Check out the Feb. write-up in Turnaround Investor
turnaroundinvest.com
The problem/why this is a turnaround stock:
From the Feb. 10q:
"Iomega, which accounted for approximately 39% of revenues in fiscal 1997, has advised the Company that the Company's products will not be a part of Iomega's long-term product strategy and sales to Iomega are projected to be lower in the foreseeable future than they were during fiscal 1997. Orders from the Company's largest foundry customer, International Rectifier, declined significantly during the year and sales in the foreseeable future are projected to be significantly less than they were during fiscal 1997. Orders for Rockwell were completed during the fiscal year and the Company does not anticipate continued sales to Rockwell in fiscal 1998. "
Looks pretty bad, doesn't it? But why are the insiders buying?
* As of December 28, 1997, the Company had cash and cash equivalents of approximately $13,554,000
* IMPX is a major supplier to companies involved in the "year 2000 issue"
* Settlement of lawsuit with no effect on company financials.
biz.yahoo.com
* IMPX was able to offset 50% of the decline in business from Iomega and Rockwell with increased business from other customers.
IMP announced it has received a patent for a new technique used to produce analog and mixed-signal ICs that have "near-ideal transistor characteristics." The chip maker said the new approach improves performance and efficiency of analog circuits used in low-power and battery-operated systems, including ICs used in mobile phones and portable computers.
techweb.cmp.com
"The $2 billion industry for power management ICs, which is expected to grow nearly 16% annually for the next several years, is becoming a viable option for analog and mixed-signal companies looking to diversify offerings and increase profitability, analysts said. While applications in the computer, communications, consumer, and industrial arenas continue to emerge, there are only a few vendors covering the entire spectrum, leaving room for others to elbow their way in."
techweb.com
"We'll use our system expertise in power management to second-source selected parts," said Barry Wiley, vice president of marketing for IMP, and a former marketing chief at Cherry. Wiley sees power management as a $2 billion market with 16 percent annual growth. "We're picking an area in which we can deliver superior performance in the long run," he said.
The power-management sector of the business promises the fastest growth among standard-linear-part types, according to Jim Liang, Dataquest's analyst for mixed-signal technologies. The market for analog and mixed-signal parts has traditionally been partitioned according to identifiable analog content. Standard-linear ICs include op amps, comparators, power-supply controllers, and many consumer and automotive-market ICs.
techweb.com
Sergio |
