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Technology Stocks : SILICON STORAGE SSTI Flash Mem -- Ignore unavailable to you. Want to Upgrade?

To: Ram Seetharaman who wrote (515)	2/25/2000 7:15:00 AM
From: Allegoria	Respond to of 1881

SST Files to Sell More Shares INDIVIDUAL INVESTOR ANALYSIS Analyst: Eric Singer (2/24/00) On Thursday, Silicon Storage Technologies (NASDAQ:SSTI - Quotes, News, Boards) announced that it has filed with the Securities and Exchange Commission to sell 3.5 million common shares to the public in a secondary offering. Additionally, SST will sell 168,000 shares of its stock at the public offering price to Acer Investment Worldwide Incorporated, an Acer Group company, in a private placement. Acer and SST have had a longstanding relationship, and the sale of stock to an Acer Group company, in our opinion, strengthens the relationship. The underwriting will be lead managed by Credit Suisse First Boston and Salomon Smith Barney. In addition to the proposed offering of 3.5 million shares, 525,000 shares are issuable upon the exercise of the underwriters' over allotment option. SST has been off of the radar screen of many investors despite its stellar performance and robust growth prospects. Visibility for the company should improve markedly as a result of this offering. We view the proposed secondary offering as a positive. Demand for flash memory continues to be very strong and manufacturing capacity is very tight. As a consequence, many foundries are looking for semiconductor companies like SST to make large deposits to guarantee manufacturing capacity. With the proceeds of this secondary offering, SST should have the financial wherewithal to ensure manufacturing capacity to meet its strong growth prospects. SST shares have had a tremendous run over the past few months. Further upside remains. Business conditions are favorable and the outlook over the next few quarters is bright. With funds from the proposed secondary offering, SST should be able to accelerate its growth plans. Shares should be bought on any price weakness. Recommended on 12/11/99 at $37.50 Updated on 02/24/00 with SSTI at $54.00 (The Magic 25 is a diversified portfolio of stocks that Individual Investor believes will outperform the market over the course of the year. In 1999, the Magic 25 portfolio was up 79.3%. On average the portfolio has risen 31.6% annually.)