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: David Tesorero who wrote (9268)	7/23/1998 11:19:00 AM
From: Samuel R Orr	Read Replies (1) \| Respond to of 11555

David, Everything you've said makes eminently good sense, and I can't disagree with any of it. You did have one advantage over me: my mother-in-law passed away more than a decade ago. The 266 MHz speed was important, and I missed it. My take is a bit different, in that I really think what will pay off in earnings for IDTI will be the diversification into areas other than SRAM. I never bought it based on thoughts their WinChip would sweep Intel, AMD, and Cyrix away. I do know Intel hates to dabble in products with mediocre product margins. That's why they got out of the DRAM business after inventing it. There will be Pentium knockoff suppliers at the low end, and IDTI should be among them. Glenn Henry's concept of a smaller die, lower powered, somewhat simplified instruction set design has inherent appeal to me. I'm not sure they can build, assemble, test, and sell it, but am willing to take that chance. Even if they don't, the other areas will eventually restore revenues and profits. My hope was, and still is, to invest and let the money sit until IDTI's stock price eventually doubles. Some of the traders on this thread have pointed out to me smart people can make discrete chunks of profit by trading on its volatility. To answer your questions directly: Intel is a BIG problem, and will retain most of the high and middle end business, though AMD has done better than I thought they would. If IDTI's sole chance to make money were based on competing with and beating Intel, I wouldn't have bought it. Additionally, the way a company communicates with and handles Wall Street is extremely important to its stock price. IDTI has not done it well. Most of the companies who do tend to be larger, and employ expensive spinmeisters to coddle and cajole analysts. In fairness to IDTI, they don't have the market cap size to attract most analysts' attention, since they don't have enough shares and their stock price isn't over what I've heard is the magic fifteen dollar figure. My only answer is that like the British, I expect them to muddle through, and hope they're clever about it. That either boils down to faith or stupidity, and I guess you have your choice. There are probably better investments, but I've tried to base mine on something I know a bit about, not some speculative frenzy or herd expectations on what Amazon/AOL/Lucent/Yahoo may do. As with anything else, only time will tell. My only suggestion to you is to buy your mother-in-law a bouquet of flowers for her part in your finances. Good luck out there. Sam