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Technology Stocks : Xicor ? -- Ignore unavailable to you. Want to Upgrade?

To: steve olivier who wrote (2216)	6/26/1999 10:46:00 PM
From: steve olivier	Read Replies (1) \| Respond to of 2920

After reading the Yahoo thread, let me clear up a misconception that may be developing. I don't expect anything great from an earnings standpoint for Q2. Jeff's $0.15 loss is as good as guess as any. What I am interested in and think could be potentially bullish is the positive effect on margins from some percentage of Q2 sales coming from Yamaha production. With this information, I think we will be able to reasonably determine what this company can be expected to earn without any top line growth. It is that potential that I think may surprise us. Now, lets say just for fun that after Q2, we are able to determine that it is reasonable for xico to earn $0.50 in 2000 just on production efficiencies without top line growth. Does anyone think that a 20 multiple on those forward earnings is unrealistic? Now, lets just for a minute assume that they make some progress on the analog / mixed signal front and start showing the potential to grow the top line. That is where the home run comes in. So, if we can determine after Q2 that $0.50 of earnings in 2000 is reasonable we have over the next 12 months a potential double to triple from these levels even without any top line growth. My guess is someone with better info than I is in the process of making that bet before Q2 is released. However, we all know that nothing goes straight up. Even the move to $14 in 1996 had dips and corrections. Any dips and corrections we get now could be a buying opportunities of a lifetime if we hear the right things in about 3 weeks.