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

To: Scumbria who wrote (7189)	3/5/1998 7:40:00 PM
From: Samuel R Orr	Read Replies (1) \| Respond to of 11555

I've watched this thread for several months, and found it both amusing and informative. Your earlier comments about Intel being unable to sell the fast, high margin 686's(I come from the old school) it's making, and unable to yet enter the fast growing, sub $1K(now $500) computer market, agree with my own opinion. Intel never has enjoyed playing in a market where margins were frugal: that's why they exited the DRAM market many years ago. Give them six months and I think they'll have a relatively competitive microprocessor offering for inexpensive computers, but it will lower their margins. They don't like to compete on price. IDTI should be able to make a small entry, and Cyrix and AMD, if IBM can fabricate their K-6 with IBM processing, should do fairly well. Overall, the number of PCs sold should actually rise, though the TAM(total available $ market) might be flat or drop, since many of them will sell for around a thousand dollars. The people who make logic, DRAM/ SRAM, and ASICs, hard drives, floppies, modems, and monitors should ship lots of units. Even subtracting a portion of that which a healthy Asia would have purchased, business should be good. With all the brick and mortar in place, semiconductor profits may not be very high. Given a rational world, which it often is not, and a few analysts with an IQ higher than that of a tree stump, IDTI's future should look promising, and its earnings should rise modestly. The company has diversified into communications, microprocessors, and possibly will get a kicker from Clear Logic. Its stock price SHOULD increase: $18 or $20 by the end of the year seems achievable to me. I don't know why what I've just said is so hard to figure out. Intel is not your typical semiconductor company. Their pain should be read OPPORTUNITY for any company fabricating a fast, workable, inexpensive Pentium type microprocessor. We'll see how it all works out, and I do hope IDT's next quarter's earnings are a dime or so.