To: Hippieslayer who wrote (9479 ) 8/28/1998 11:18:00 AM From: DJBEINO Read Replies (1) | Respond to
INTEGRATED DEVICE TECH IDTI -- The performance of Integrated Device Technology's shares reflects the Street's discontent with the results of the company's move from the SRAM market thus far. Even at the lower prices, analysts are looking for evidence of strength in IDTI's WinChip among other factors, before calling the stock attractively valued. The company is set to announce earnings on Wednesday, and while we would be surprised to see insiders acquiring shares so close to a positive announcement, recent accumulation implies that executives could feel the tide is turning for this stock. Over the years, insiders at IDT have demonstrated an ability to judge the market value of their shares. They were buyers from '90-91 and sellers from '93-'95, the last time the stock traded at its all-time highs. The recent activity consists of three executives acquiring 410,000 shares through options exercises and open-market purchases at $6.75-$7.63 per share from June 9 to June 12. President & CEO Leonard Perham exercised 100,000 Non-Qualified Stock options (set to expire from 2000-2001) and held on to all of the underlying shares. We view this type of action as bullish because Mr. Perham is incurring a tax liability for the difference between the option's strike price and the stock's market price on the day of the exercise. By holding on to the shares, he is paying taxes on gains not yet realized. Additionally, Mr. Perham was a net seller of shares from '93-'95. Director Carl Berg, who was a persistent buyer from '90-91 and seller from '94-'95, bought 300,000 shares. Finally, VP & Chief Technology Officer Chuen-der Lien purchased 10,000 shares in his largest open-market buy since initially filing in '94. Integrated Device Technology designs, develops, manufactures and markets high performance semiconductor products and modules for data communications and telecommunications equipment, personal computers and shared network devices.
