Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rob S. who wrote (5578)	1/7/1998 2:00:00 PM
From: Gordon Quickstad	Read Replies (2) \| Respond to of 11555

It would seem that areas of the semi business are going to be victims of their own success. They've increased chip capabilities and fab capacity and lowered prices to where commodity parts have little margin, e.g. DRAM measured in bytes shipped is increasing DRAMatically whereas when measured in dollars, it's anemic. IDTI seems to have a good sound approach in adding to their more or less commoditized SRAM business with microprocessors (MIPS, C6, and C6+), graphics chips, and IP (Clear Logic). Unfortunately, it'll probably be 2 to 3 quarters before these endevours start to hit the bottom line in a significant fashion. If the market senses success, then the stock will rise ahead of the bottom line and that's why I'm invested now. Lehman is one of the best at forcasting in this industry so I was disappointed to see their downgrade from buy to outperform. The mention of ATML's that they are having trouble getting payment from some Asian buyers seems to me to be the real killer for the tech sector today. Hopefully the Asian thing is already built into the tech sector and we'll not drop too much lower. Here's some examples: Micron (MU) high last fall 60, now 26 with PE of 18 National Semi (NSM) hi last fall 42, now 24 with PE of 13 Texas Instr. (TXN) hi last fall 71, now 45 with PE of 8.8