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Technology Stocks : DSP Group: an incredible bargain? -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Hay who wrote (1039)	11/20/1999 11:34:00 PM
From: savolainen	Respond to of 1055

[a beautiful thing] Hi Kevin, >>I think what we're seeing is a value stock that's turning into a growth stock...<< Completely agree... and a beautiful thing it is too.. ;) --- Seems like DSPG's building up a pretty good war chest: At the end of last quarter they had $115 million in cash and the recent sale of more AUDC shares will add another $ 42.8 million which should mean right about now DSPG has about $158 million in cash ... and also an additional 2.9 million shares of AUDC worth, oh about... $228 million (@ friday's close of $78.75)... plus a healthy stock price which could be traded against ... We had been speculating a while back that DSPG might be making an acquisition at some point... Am guessing DSPG could be up to something ... This management team seems to be a patient (and careful) group, they've hinted for some time, but said they weren't going to rush it... and waiting may have paid off, they're certainly in one heck of a better position today to make an acquisition... than say at the end of last year.. ;) til later s

To: Kevin Hay who wrote (1039)	11/23/1999 3:15:00 PM
From: savolainen	Read Replies (1) \| Respond to of 1055

[Pile o' Cash] Hi Kevin, Thinking about DSPG's pile of cash tugged at some memories of the last cc. Went back and checked, and sure enough, this was explicitly discussed, and indeed it is acquisition related, tho maybe not til next year. In a nutshell, a question was asked about what they are planning to do with all the cash. The answer was put in the context of how acquisition accounting rules will be changing. Apparently pooling is being phased, out and DSPG feels that this will give the edge to cash: "We believe that in the year 00 after the pooling will not be available anymore, there will be a big advantage to acquire either companies or technology by cash rather than by shares. Since we have plans to really do some, lets say... to expand our business, We believe that strong cash position is very important and we feel comfortable that we will know how to use this cash very wisely." We know that DSPG is looking to lean into VoIP (earlier in the call): "and VoIP is definitely one of the areas in which our company is seeking complimentary technologies in different ways. And this is a matter on our agenda and we believe that at the end we will be doing something much more, lets say, intensive in this area..." My guess is that the acquisition will be "in this area". Go get 'em DSPG! s