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

To: Steve Lewis who wrote (8309)	5/12/1998 4:18:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

We don't have the large increase in capacity and drastic oversupply situation of two years ago but we do have a large price decline in uPs and peripherals prices. That is likely to stimulate demand but not before it takes a toll on margins and earnings during the next couple of quarters. Its a pickers market as some stocks will likely buck any general trend. IDTI will be treading water for a couple of quarters as they ramp up production. They will experience lower prices and higher costs that will not be off-set by increased sales IMO. Out of that can come a lot of good momentum if they ramp production internally and at IBM successfully. I see IDTI moving in a range between 10 1/2 and 12 1/2 for the next couple of months. The potential for upside will likely prevent much of a slide but the unanswered questions will keep a fair amount of risk that will limit the upside. At this point IDTI is not that vulnerable to a market correction - it's already had about as much as it should see, IMO. I am doing a little shorting of some speculative tech stocks and am long on some others - looking to "ballance" the risk and profit from frothiness.