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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (49220)	4/9/2002 6:12:05 PM
From: lh56	Respond to of 99280

hi dave; re:ESST, Zack's stock of the day pick today: (hope there's something useful in here) zacksadvisor.com "It's essential to know that ESS Technology designs audio, video, and fax/modem chips for PCs and notebook computers. Its AudioDrive products record, compress, and play back PC audio signals. Its VideoDrive chips deliver full-motion video, and its TeleDrive modem chips send and receive computer data over phone lines. ESS, which contracts out its manufacturing, sells to distributors (Hong Kong distributor Dynax accounts for a third of sales) and manufacturers such as Compaq, IBM, Philips, and Sony. Asian customers account for more than 80% of sales. ESS is spinning off its 62%-owned Vialta subsidiary (Internet-related multimedia devices). Founder and Chairman Fred Chan and his family own about 30% of the company. ESS expects to report first-quarter revenue of more than $75 million. The company also plans to raise its earnings per share target. In February, ESS raised its first quarter earnings estimate to between 22 cents and 25 cents a share and raised its revenue projection to between $68 million and $70 million. WitSoundeview has a Buy rating on ESS share with a price target of $30 per share. The strength in ESS is resulting from share gains at its customers, principally at the expense of Japanese suppliers utilising captive ASICs. Analysts estimate that Apex, one of ESS's largest customers, is presently experiencing an approximate 45% year-over-year growth in DVD players vs. 15% unit growth for the rest of the market. Over the past year, ESS Technology has nearly doubled its market share, to the mid- to high 30% range. DVD-player market is expected to grow by 30% to 40% over the next few years. DVD players had penetrated 25% of US households by the end of 2001. ESS is projected to achieve 27% EPS growth over the next three to five years. Shares are trading at 18 times this year's estimate of $1.10 and 16 times next fiscal year (Dec 2003) estimate of $1.22. There are eight analysts following the company at this time: three have a Strong Buy rating, and five have a Buy rating on ESST shares."

To: Dave Gore who wrote (49220)	4/9/2002 7:17:10 PM
From: mishedlo	Respond to of 99280

Do I gotta clean up all your sloppy DD? LOL! That makes about a PE of 16+ looking forward only about 2-1/2 months. Well maybe you do. Then again is this maintainable? Still I have to admit a PE of 16 is better than most anything you can find, but look at CHKP. When the TA and the FA do not jive, believe the TA. It does not look very pretty. The shorts do not believe this is maintainable, the TA suggests otherwise, why should I believe it? Let's look at an example from bitter experience. SSTI was at 21 and had a PE of 10 or so. I loaded the boat. Kept adding, it kept dropping. All the while SSTI kept affirming guidance, analyst upgrades etc, etc, etc etc etc. I bailed at 18 (thank god). SSTI fell to 4. With its nice PE of whatever and the market did not care one iota. Since it warned twice after that the PE was not really 10 in the first place. Perhaps this is the same. M