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Technology Stocks : ISSI a great opportunity -- Ignore unavailable to you. Want to Upgrade?

To: Ram Seetharaman who wrote (877)	11/4/1999 12:47:00 AM
From: Softechie	Respond to of 1058

Others won't double like ISSI. It still has a higher headroom. I'm planning to get more at lower level.

To: Ram Seetharaman who wrote (877)	11/4/1999 8:46:00 AM
From: Sridhar Srinivasan	Read Replies (1) \| Respond to of 1058

Ram: While I share your optimism regarding techs in general and semis in particular, I have a few significant concerns about ISSI: 1. Their track record the last two years is simply horrible. Management has shown very little vision (in selling off valuable assets at clearance prices just when things were turning around). This indicates a clear inability to understand chip cycles in spite of being insiders 2. Their financial management has been abysmal. They have racked up losses over losses (and nothing can justify the loss last quarter) and seem to have developed special skills in losing money even when the pricing environment has been so good that it is almost impossible to lose money. 3. They seem to have guided analyst estimates lower for the next quarter and year (break even for Dec. - vs. 0.04 and 0.24 for FY 2000 vs. 0.42) and this demonstrates a clear ability to foresee further mis-management (and may be higher overheads). How else can one guide estimates lower in the current boom environment? Unless the company management can come out and articulate that they are capable of executing/benefiting from the current boom in chips, I do not see improving prospects for ISSI. They need to build investor/institution confidence, and after three years of losses and reasons/write offs, there is very little of that . I think your comments are probably valid for other semi companies - idti, cy, altr, atml, siii, even amd and they represent much better investing opportunities. Best Regards, Sridhar