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Technology Stocks : DSP Group: an incredible bargain?

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To: Kevin Hay who wrote (993)5/12/1999 5:10:00 PM
From: Kevin Hay  Read Replies (1) of 1055
 
It appears the street is now focusing on 99-2000 growth,
instead of 98-99.

note the following: (data from Zacks)

12/99 consensus: 1.43
12/00 consensus: 1.82
------------------------
change.................0.39 or 27% growth

5 yr average pe is 31.5
DSPG: HAMBRECHT&QUIST made new estimate for long term EPS
growth of 30.00% per year on 05/10/99

If pe (on 2000 eps) = growth rate: 1.82 * 27 = 49.14
**price chng ytd: -3% (hey, we're almost back to even!)

I've tended to agree with the bearish 'what the hell are they doing?'
sentiment expressed out here, though the objective of lessening
the volatility seems to have been achieved. So, maybe they weren't
nuts..? I didn't average down on the last dive, oh well, but I'm
back in the black and quite pleased about that.

Once we get better visibility on earnings I think we'll easily
see a price of 30. Add a little home-networking hype and who knows?

FWIW, another small cap semi (ahaa) recently announced a 3million
share dilution which had virtually no effect on it's stock.

Also, we still don't know what Sony's using dspg's cores for, do we?

thanks,
-Kevin
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