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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (166)	2/23/2001 11:52:37 AM
From: kodiak_bull	Read Replies (1) \| Respond to of 23153

Jim, re: ISSI I don't follow this stock but your question has me interested. All you say is true, although I did note 1) the very small cap nature of this stock (26 million shares, market cap of $365 million and falling, 2) the specialized products it focuses on ("high speed and low power SRAMs and its low to medium density DRAMs ") and the fact that last year's earnings were 68% gains and only 32% "real" earnings (earnings of $25.1 million included a $17.2 million gain), which may have some folks focusing on the quality of these earnings going forward. Mostly, though, I believe this downward spiral represents a couple of things, neither of which would seem to matter to someone with a relatively long term view of the stock (more than, say, 5 days): 1) it still trades at about twice its 52 week low; for those who love charts it may mean it has another 6 bucks or so to fall before it's "cheap" enough. 2) Look at this list of customers. They're all warning and moaning. "The Company's customers include industry leaders such as 3Com, Alcatel, Cisco, Ericsson, Hewlett Packard, IBM, Lexmark, Motorola, Nokia and Seagate." To me, this is one to watch and buy when the market capitulates. Since it's not one of the large darlings there should be enough time to get it before it skyrockets. Dos centavos, compadres, nada mas.

To: jim_p who wrote (166)	2/23/2001 12:55:42 PM
From: The Ox	Read Replies (2) \| Respond to of 23153

This type of market reaction appears to mirror what happened to the disk drive sector a few years ago. Based on forward earnings estimates (at that time), all the stocks in that sector were screaming buys. After a few months, it became clear that the future was much more turbulent for those companies (the likes of WDC, APM, RDRT, etc.) The PEGs were meaningless back then or maybe it should be stated that the estimates were those of analysts who were seeing the future but were calculating expected results based upon past performance, not based on what the new horizon had in store for this sector. Look how fast NT, CSCO and SUNW went from 70% growth to 10% expectations. Just something to consider when looking at forward PEs. I doubt the future will be as negative for ISSI as it was for the disk drive group but right now the "future is cloudy" at best.