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Technology Stocks : Xicor ? -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (2908)	8/21/2000 9:58:20 AM
From: pmcw	Read Replies (1) \| Respond to of 2920

Jeff, Thank you for the thoughtful reply. I absolutely agree with your item one - the "dead wood" must be culled and rewards must be performance based. I don't know if you've seen my posts on the "7 Critical Success Factors", but replacing the BoD and hiring a permanent CEO are two of the seven. Strategic design wins (leads to sales) is one more of the seven. So, your first point make up over 25% of what I consider to be critical. However, increasing sales at the rate of the semi industry was simply never in the cards this year. RV didn't want to hear this when I told him so in January. Even Sudeep didn't like the idea. However, they are/were both wrong. I think rv has since come to understand the model for what it is and see its virtues. However, I'm not sure if Sudeep's ah-ha light has come on yet (I've not had a follow up conversation with him on this subject). I predicted to rv that read/write FLASH would take EEPROM's out of some strategic sockets in the cell phone industry. They did so in Q1. This lost business (not the two issues announced on Gray Tuesday) is what was replaced with low density (lower GP) business. XICO's hopes for EEPROM in 2000 were and still are to simply stay even with 1999. In the mean time, the goal for 2000 was to increase mixed mode business by 40% to 50%. Even with the internal strife, I believe they will accomplish this goal. The only reason they don't just drop their EEPROM product line is that it pays (break even maybe - slight loss more likely) for their field infrastructure. This infrastructure is necessary for them to succeed in their plans to grow mixed mode as quickly as they are. Without the benefit of a lifetime in semis I can't expect you or rv to understand (appreciate) the importance of mixed mode and the utter lack of importance (for XICO) of EEPROM. Sudeep doesn't even understand, but his industry experience is much more limited than most think. I know this about Sudeep from his previous employment with XICO and my more recent personal conversations with him. My favorite investments are in stories (business models) that are not broadly understood. Thus far this year, I've picked (and posted about) nine companies that have two bagged or better. I feel XICO has a very good chance of doubling before year end. Regards, pmcw