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

To: Ray Trevisani who wrote (8229)	5/6/1998 11:27:00 AM
From: Rob S.	Respond to of 11555

It's good for IDTI longs that the stock is seeing a fair amount of pessimism and questioning of the numbers. I think we are at or near a bottom for a while at least. If we get big weakness in the tech stocks this summer and IDTI doesn't have much better news about production rates on the C6 family, then IDTI will be vulnerable to plunge to 9. Right now I don't think it will happen.

To: Ray Trevisani who wrote (8229)	5/6/1998 11:55:00 AM
From: Gordon Quickstad	Respond to of 11555

The company has actually executed fairly well in face of the league they're in. It's just what they're up against. Not only do they compete against an outstanding group of companies, they have all the marketing clout to work against, too. Intel has only had to detune one of its chips that has already paid off handsomely in high margins in order to become a major player in the low cost arena. They already had their marketing channels in place. Whether IDTI can keep margins and yields high enough to earn some good money in this game is the question. Some of their design expense and effort is going to be wasted because the target is always moving and they can't control where it's going to be at the time they get all the problems worked out of their designs. I still think the C6+ is going to be a big winner because of its raw power. I never have had a lot of hope in the C6 because it was just too slow in the floating point area - even though most people would never notice it. The company has always said that they wouldn't attract any top tier buyers. The C6+ is going to be a screamer in performance, any way you cut it. The only negative is the variation from the Intel instruction set in the MMX area. I don't think this will be big problem, though, if the three cloners stick together and have good support from Microsoft. Game makers will write code to support it, too. I would love to see some gaming benchmarks come in very competitive.