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: Dale Knipschield who wrote (8333)	5/13/1998 11:33:00 PM
From: 5,17,37,5,101,...	Read Replies (1) \| Respond to of 11555

Some time ago, IBM was mentioned as a possible suitor to IDTI. This from today's WSJ: In a brief question-and-answer session, Mr. Gerstner indicated that IBM's acquisition strategy was primarily focused on software and services companies, and not hardware, setting at rest speculation that IBM might buy a network hardware provider or a PC company to beef up these two areas of weakness. Jackson

To: Dale Knipschield who wrote (8333)	5/14/1998 12:06:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 11555

Agree. The "street" never likes disappointments. IDTI had a disappointment last quarter because they changed their guidance for earnings for this quarter and next. Maybe there is a lot more to consider than immediate earnings but "Lower earnings outlook, lower price" is basically what has moved down IDTI's stock price. Another major ingredient is the degree of confidence you have in the earnings outlook. The change in earnings outlook does some damage to the degree of confidence that even the lower numbers will be met. I agree that IDTI needs to show increased earnings, and it may take more than one quarter to turn things around to the point that confidence is raised substantially. This quarter is expected to be flat. I don't think that "good news" outside of an improved earnings outlook will have much effect on the IDTI.