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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Hippieslayer who wrote (4830)	11/20/1997 12:22:00 PM
From: Rob S.	Respond to of 11555

Not much can be expected to change the basic situation; IDT is just getting into the MPU game (war games), has yet to show how successful they will be at ramping production to large volumes, has yet to show that they will yield high numbers of good parts or what the distribution of speed grades will be, and is yet to show what this will do for the bottom line. As Glenn Henry said at Comdex - he is happy to just be at this years' Comdex rubbing sholders with the likes of Intel, Cyrix, and AMD. IDT could do a much better job of keeping the investment community informed about their progress with the C6. Lack of any information about customers, ramps, yields, etc. just leads to speculation that things are going poorly and that leads to a lackluster or down stock price. Henry shouldn't have said that IDT would announce 3rd tier custoemrs if IDT didn't intend to follow through. IDTI is now trading lower than I thought it would be. I do think that IDT is a mid-long term buy with a great chance for a double in price by the end of next year and that this is an excellent time to buy the stock. It is not a comfortable time for those who bought it at a higher price hoping news about the C6 and other products would move it higher. Of course, some other products may start to move into higher production before the C6. The new WebTV II will be on store shelves ahead of the Christmas buying season and will get a lot of mass advertising to stimulate sales. At a price of around $30 for IDT's MIPS processor, the hoped for 1 million units sales would add significantly to IDT's sales and earnings. ZBT and other new products that are quickly gaining acceptance should also help to fill up vacant manufacturing capacity. The problem is that investors have heard this song and dance repeatedly over the past several quarters and a repeat no longer is likely to move the stock price. That pushes the emphasis to things that will impact the bottom line more directly - like prices and bookings and yields. It sure would be nice if IDT had something to say about some of these things.