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: Papillon who wrote (7275)	3/9/1998 1:05:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

The tech stocks have shown very strong performance in the face of earnings warnings from several blue chips. This could be signaling that the market is not yet ready to roll over and play dead. Investors are looking past the bad news or just ignoring it. Mutual funds are continuing to receive net deposits at a healthy pace. In the short-term, many high flying blue chips cannot keep up the robust growth in profits and sales they have experienced in the past couple of years. Many sectors of the PC industry are reeling from a maturation in the PC platform and the resultant increased competition in uPs, HD drives and other components and a restructuring in market focus toward commodity pricing models. This sort of house cleaning is a normal part of the evolution of the industry. Lower cost points are necessary to expand the use of PCs in line with their becoming a common appliance similar to a TV or stereo. I think IDTI is establishing a nice base. Very few investors appear to be willing to sell off shares despite the bad news from INtel, MOT & Compaq. More earnings warnings are likely in the next couple of weeks before we get into the "quiet period" before the end of the qtr. IDTI is likely to report flat earnings but advancement in product ramps. (I haven't talked to IR lately to get a fresh read). We could see some increased nervousness ahead of earnings but I don't expect a big move down. Any good news that substantially effects the earnings outlook that comes out can trip IDTI higher or lower. IMO, IDTI is a buy bellow 13 1/2.