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 (8010)	4/24/1998 11:01:00 AM
From: Steve Lewis	Read Replies (1) \| Respond to of 11555

Thanks to Rob S and all the other good posts in the last few weeks. Here is some IDTI thoughts: - Merrill Lynch began coverage with an accumulate and long term buy. I believe they were(are) the largest institutional owner of IDTI and their action seems to reflect the consensus that we have a potential long term winner in IDTI. - words like "major player" and a generally sunny upbeat company description going forward on the looming prospects in the X86 market. "We will grow in excess of the marketplace". - mention of a new higher power (post C6+) design and a "systems on a chip" development effort coming. - It will be interesting (& financially telling) whether the IBM foundry effort AND a large OEM (500-750K units/quarter) bear fruit closer to July 1 1998 or will it be December 31 1998. (IDTI said 3 or 4th quarter for C6+/IBM). - a year ago the CEO said "watch us in the March 1998 quarter for payback" on some of their efforts. Well that has slipped a bit & the softening of the SRAM and Communications sector business represents the greatest downside to their performance numbers as they ramp up. - Intel will play it tough especially on the PR front though I still see a company (Intel) that makes 50%+ margins and is 20+B in size. There's a huge pie to go after with improving margins (for IDTI) to boot! The deflation in PC pricing looks like an unstoppable force. - On a broader topic, I think the embedded market for computers will grow massively in the next ten years with everyone owning many computers in their house, cars, inside nearly everything. There will be many winners in this smaller, power efficient marketplace and IDTI should be there also. (They mentioned that they have three design teams doing RISC since they are not counting on QED for designs) - The biggest risk to IDTI and the tech sector is an overall market decline with Fed raising rates (where's the inflation guys?) or a slow down. I'm still long at this time and am afraid we will need 12-18 months for IDTI to fly to or past the 1995 highs of $32.