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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (27798)	8/4/2000 9:25:37 AM
From: cowgirl-ona-1eyed-horse	Read Replies (1) \| Respond to of 35685

Yo back atcha, Scott! re: SSTI Hauled this over from the Yoda board- Lets hope all this good press gets SSTI up off it's BUTT! and back above the 200DMA (I added bold type) cowgirl --------------------------------------------------------------- 8/3/00 11:07 pm New Kaufman Info! :) 8/3/00 (swiped from ssti board) WEAKNESS PRESENTS A STRONG BUYING OPPORTUNITY We believe the weakness in SSTI shares over the past several days presents a great buying opportunity. Today’s weakness appears to be caused by speculation on changes in production plans for Motorola’s (MOT $36 5/8) wireless business. We understand how concern over a bell weather client can create price pressure on the shares of SSTI. However, it is important, we believe, to understand the potential scope of this impact on the operating results of SSTI. * No single OEM customer of SSTI’s is greater than 5% of total revenues. * Revenues from cellular phones represent less than 2% of total revenues. * Motorola is a licensee not simply a customer. As a licensee, MOT’s impact to SSTI’s revenues is through the licensing line and not from product revenue. The three points above clearly indicate that a change in MOT’s near-term build plan for cellular phones would not have a material impact on the revenue of SSTI. Furthermore, SSTI is engaging MOT in more than just cellular phones - we would highlight the use of SSTI technology in MOT’s 8-bit micro-controllers as well as in MOT’s M-Core series of micro-controllers. These devices are used in a vast array of end-market products including communications (wireless and wireline), consumer electronics and consumer durable goods (automobiles and appliances). As can be seen from this brief discussion, a near-term shift within MOT’s cellular production is clearly not material to the fundamental growth expectation for SSTI in the near term. Additionally, SSTI is currently in a demand environment in which it has put customers on allocation, therefore, any temporary demand changes from a single client are quickly absorbed by other clients. As we highlighted last week in a note of July 28, SSTI appears to have sold-out currently available capacity for the remainder of 2000 and possibly the first quarter of 2001. We are reiterating our STRONG BUY rating and $175 price target as SSTI’s outlook continues to remain extremely robust with revenues expected to increase 271% in 2000 and 133% in 2001 and EPS forecast to increase over the next two years to $2.72 in 2000 and $5.85 in 2001 from a loss of $0.13 in 1999. SSTI is delivering very strong current results and is laying the foundation for a solid performance over the next several years through significant new product development and the introduction of application-specific flash memory devices. We believe the company will become the standard setter in low-density flash through its new product development and embedded flash licensing. 1998A 1999A 2000E (NEW) 2000E (OLD) 2001E (NEW) 2001E (OLD) Mar (1Q) ($0.10)A ($0.28)A $0.34A - - Jun (2Q) ($0.05)A ($0.07)A $0.71A - - Sep (3Q) ($0.32)A $0.02A $0.75E - - Dec (4Q) ($0.29)A $0.21A $0.92E - - Full Year EPS ($0.77)A ($0.13)A $2.72E $5.85E % Change EPS NM NM NM - $1.15 - Price/Earnings NM NM 20.5x - 9.5x - Revenue (MM) $69.4 $124.8 $463.3 $1,080.8 % Change Revenue -8% 80% 271% - 133% Market Cap/Revenue 25.7x 14.3x 3.8x - 1.6x - EPS (Fiscal Year Ends 12/31) This Is a Reply to: Msg 14294 by strike_de View Replies to this Message <- Previous Next -> Message 14306 of 14314 Reply Go to: Start \| Most Recent or Msg #: Message List -------------------------------------------------------------------------------- Copyright © 1994-2000 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service - Guidelines - Help