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: Lockhart who wrote (6902)	2/19/1998 7:43:00 PM
From: Hippieslayer	Respond to of 11555

I've been thinking of adding pork rinds followed by shot gunning a can of near-bear as an addition to my daily ritual. I think that might help keep me--oops I mean the current trend afloat for a while.

To: Lockhart who wrote (6902)	2/19/1998 8:01:00 PM
From: Rob S.	Read Replies (2) \| Respond to of 11555

There is a lot of excitement about IDTI's prospects that are already in the stock. New things that can happen to change the picture to the upside are; 1] A big fab agreement with IBM, SGS, TI or xyz? I give this an 80%+ probability of being put together within the next six weeks. 2] Confirmation of meeting yield and produciton targets (60% die yields at 100K+ units per month rate. I think that this is highly likely but may already be totally factored into the price. We could get a further upside surprise, say production rate of 150k pieces/month and projections for reaching 250k by the end of next quarter (not considering any outside fab). 3] Announcement of early delivery capability on the C6+. The current schedule is already ahead of Intel and Cyrix but not AMD so I give this one only a 25% chance of happening. 4] Announcement on a major OEM for which IDTI will do a semi-custom version of the C6. IDTI has a lot on the development and production slate as it is but I don't count this possibility out. If a new fab partner is brought on, particularly IBM, TI or a Japanese company, doing an OEM version of the chip may be a strategic goldmine. How about an Internet packet optimized version of the C6+ that greatly speeds Internet transmissions when used with a likewize optimized version of a Rockwell K56 modem or Ascend switch? That fits into the speculation on an acquisition by Rockwell. Rockwell has lots of cash and too few products to grow nearly as much as they would like. Maybe I'm prejudiced but TI just doesn't seem likely to acquire IDTI. The management there is just not up to taking advantage of the potential. 5] An announcement on the 3D graphics chip that it will blow the socks off of Intel's new part and will have an ASP of $22. It would be great if we could get some GQ, like a preliminary spec sheet. A lot of things can happen that can re-write the projections for sales and earnings and force IDTI well beyond the current level. On the otherhand, if no "new news" comes out, the excitement may cool off and the price may pull back a bit. I think the majority of investors are focused on what will happen six months and further out and won't react too much to short-term events. It's not a bad time to consider taking some profits but then I recommend jumping back in if the above or other news hits that changes the outlook substantially.