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Technology Stocks : Power Integrations (POWI) -- Ignore unavailable to you. Want to Upgrade?

To: Sally Gallagher who wrote (25)	3/16/1998 4:36:00 PM
From: Bobo	Read Replies (1) \| Respond to of 449

The other two customers are Motorola and Compaq. Motorola was a 20% customer last quarter. Based on some recent information I have, weakness in Q1 98 is already built into the company's guidance. As far as Iomega goes, POWI just entered the process of filling the pipeline for a number of Iomega products in Q1 so Iomega's order flow should not represent a decline in orders. I think Clam Clam has mentioned this but the challenge for the company appears to be transitioning Q2. The latter half of the year seems to have some new market reach (<5 watt stand-by market) and typically ramps to the eof the year anyway. I personally believe this stock is a no brainer at $11.50 but do not have a full position yet (about 3/4's). I would be unlikely to take a full position unless their was some significant short term panic or if the market reacts negatively to Q2 guidance. My sense is that this mgt team has been cautious with their guidance to sell side analysts and that they are quite confident in their full year numbers. The market potential for the product is significant. As an example, the projected annual unit growth of the market currently exceeds POWI's 97 full year shipments. POWI's growth may be saw-toothed, providing an opportunity or two for buying, but should be solid on average.

To: Sally Gallagher who wrote (25)	3/18/1998 10:02:00 AM
From: Clam Clam	Respond to of 449

Not sure what happens on the CC but I stick with my previous analysis regarding the numbers (https://www.siliconinvestor.com/readmsg.aspx?msgid=3267589). There is good room in the margins to beat EPS. Customers blowing up left and right is problematic but I would tend to think that this just limits upside. Sell it if they don't beat estimates by at least $.02.