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Technology Stocks : INTS - Integrated Systems -- Ignore unavailable to you. Want to Upgrade?

To: John B. Dillon who wrote (320)	10/17/1999 11:51:00 AM
From: Alan A. Hicks	Read Replies (1) \| Respond to of 327

Interest does seem to be increasing in the embedded sector. With the new Dain Rausher recommendation, there are now 3 analysts following INTS: H&Q and Rauscher with "Buys" and Lehman with a hold. All have earnings around $0.12 for Q3 Nov. and $0.36 - $0.37 ($0.01A, $0.08A, $0.12E, $0.15E) for the year (Feb 2000) and $0.70 next year. INTS and WIND have been acting better relative to the stock market's recent strong decline. One negative factor that may be having an impact on the share price are that mutual funds' fiscal years end in Oct. so they have to take tax losses before the end of October. I am beginning to suspect, though, that since more and more people are aware of that, the mutual funds have been taking losses earlier. It could also be that if a fund wanted to take a tax loss, they could have done it in Aug. and Sept, expecting to buy back on Oct. weakness. That is a possible explanation for the steady selling in Aug, Sept. in INTS but now acting more like it is under accumulation. Small stocks in general appear to be under accumulation also. At any rate, any final tax loss selling from mutual funds will be over in a couple of weeks. INTS has been in a three-year downtrend line since its high made at $42 in 1996. The downtrend line is now about $14. If we can get through October and the market settles down, I will be looking for INTS to move up and at least test the downtrend line. If they make the $0.12 number for Q3 Nov, we could see INTS finally break its three year downtrend. If INTS at least makes each succeeding quarter, we should begin a steady long-term uptrend. Making another quarter could also move Lehman to a "Buy."