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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (75593)	10/15/1999 10:49:00 AM
From: tejek	Read Replies (1) \| Respond to of 1572529

Hi Amy I am not sure they actually missed earnings as you indicate although I know there were concerns. A couple of months back DSP's stock started to flounder and lost over a third of its value. At the time I did a quick review and decided to pass on it. I had exited the stock a couple months earlier, having made good profits by the way. The questions at the time was whether product sales would continue at their high level and whether their product was still state of the art. I consider both DSP and Level One, another one of my former holdings, to be/to have been great companies with good reputations and great fundamentals. However I believe both ran into the same problem; maintaining cutting edge technology. I am sure you know how much R&D impacts the bottom line with a small/mid cap company budget....usually a much bigger percentage than with a large cap. Sometimes, because of the pressure to keep up, they end up selling out to an intc. Without a tech background, its hard for me to evaluate whether a company's technology is less than cutting edge so can't comment with respect to DSP. I do know that these same issues were circulating around Level One at the time of their acquisition by intc. In fact I believe Level One got a downgrade the same day that the intc purchase was announced. Subsequently there was speculation that intc over pays and that it buys a good company at the point where their technology has lost its edge. Honestly there has never been anyway for me to determine if that is true. Hope this helps. ted