Rob, You're right about all your particulars, but look at that power: up 5/32 in a very down market. IDTI's WinChip isn't going to add much to the profit picture until they can deliver units that run at a minimum of 233MHz, and preferably, 300MHz. Unfortunately, I don't think that can occur before early 99. The rest of the product line should put them in the black, though.
Remember, even Merton and Scholes can make mistakes, and big ones, at that. I'm not sure you'll be able to hedge your bet on IDTI, but its stock price will recover when the semiconductor industry does. I realize my memo isn't very quantitative, but taking the first derivative and setting it equal to zero will give you a maximum, or a minimum. You choose the option.
If this seems a bit flippant, there's a big hurricane moving toward the Keys and southern Florida. The elemental storm is more important than the financial storm right now. Let's hope Wall Street looks at things more optimistically tomorrow. Regards to all you stalwarts out there. Sam |
