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: Michael D. Christian who wrote (9628)	9/22/1998 4:27:00 PM
From: Steve Lewis	Respond to of 11555

MDC, I'll let Rob S. answer but IMO the potential good news (and it is only potential at this time) is the pricing for these "portable" chips. It would be nice for IDTI to fight over the chips costing $150+ though they need to have 300Mhz however. From the article: "The K6-300 will cost about $229 vs. the $637 for Intel's 300-megahertz Pentium II. Computers based on the Intel chips sell for more than $3,000, while AMD projected costs of $1,999 to $2,499 for K6-based portable computers."

To: Michael D. Christian who wrote (9628)	9/22/1998 5:13:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

IDTI has tried to compete in that space but you have to say that they DON'T COMPETE THERE or anywhere in the PC marketplace except in a token manner (and at a loss). Failure to reap profits from several blundered attempts to field new products is why the stock price has been so depressed. The stock buy-back is management's way of saying that they think the stock is under-valued but it could also be argued that the prospects for soon lifting the stock with an improved showing is not great - otherwise it would not be needed. I think the stock has a fair chance of moving up to around 6-6 1/2, the first significant resistance level. The chance that it will drop much from here is not that great as long as this buy-back is carried out whenever the stock pulls back. The effect of the buy-back should be to instill a bit of confidence. Most investors who would have sold at this level, including myself, probably have - that will increase the effect of a marginal increase in buying pressure. IMO, IDTI is not going to be a rocket for at least until early next year. Right now the buy-back slightly tips the scale to make the stock an attractive hold and mildly bullish buy. Given the problems other companies are likely to have maintaining profit levels, IDTI should perform better than average.