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

To: PuddleGlum who wrote (4916)	11/24/1997 2:58:00 AM
From: flickerful	Read Replies (1) \| Respond to of 11555

steve...your efforts are welcome. thank you. <eom>

To: PuddleGlum who wrote (4916)	11/24/1997 11:35:00 AM
From: Rob S.	Read Replies (2) \| Respond to of 11555

Thanks Steve. I haven't looked back at the particulars on IDTI. Many of the high techs participate in the January effect rally. As a matter of fact, if you bought tech stocks each year only during October to early November and in the Spring if they drew a big pull back and sold them after they have run up and started looking lousy according to the TA of the group and each stock, you would have locked in more than the gains for the entire year but had your money "at risk" for only 1/3-1/2 of the time. That market performance depends on your ability to participate in about 2/3 of the run up and take profits when the tech stocks are enthusiastically being touted but are "looking toppy" according to the TA or market sentiment - everyone loves them. That takes some work and discipline. The time to buy tech stocks is when the overal market cycle is favorable and the stocks are out of favor. Different segments follow at least somewhat different supply-demand cycles but the patterns are similar. Most companies comprising the semi industry have entered into the growth phase of the cyle. IDTI is about 6 months late in the cycle due largely to their large investments in plant capacity and R&D. Maybe IDT could have done things a bit differently, such as going to contract fabs for some of their production capacity. However, we now have a few years of floor space (depending on how well the C6 does) that can be expanded into with new fab capacity. I think that the "January effect" will probably be particularly good for IDT in '98 because the benefits of the new products should start to "come home" right at the time that the stock market is most receptive.