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Technology Stocks : DSP Group: an incredible bargain? -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Hay who wrote (944)	10/20/1998 4:16:00 PM
From: Tom Caruthers	Respond to of 1055

Kevin, Thanks for the cc summary....I haven't had time to take a listen myself but I will try to soon. Overall, I think they had a good quarter. Bread and butter operations still chugging along...15% growth is not too bad minus Korea. But it looks that TAD revs have plateau-ed...but the royalty revs are taking off nicely... Sony should come though in a big way for DSPG...one of the marketleaders in cellular telephony... Almost $7 in cash...with introduction of Palm puts them back on the map. $10 today was sort of silly. Good Luck! Tom

To: Kevin Hay who wrote (944)	10/20/1998 4:18:00 PM
From: Webb B Blackman Jr	Respond to of 1055

Kenin, No one should feel that they are talking to themselves all the time. I have owned DSPG for close to 4 years now and have real mixed feelings about the company. I have seen it rise in price to much higher levels and have made a very reasonable profit on the stock several times. Right now, I am in the stock at about $18 a share, so I do not like the present condition all that much. In reading the recent information that has been released by the company, I was not all that happy about the recent growth rate. Less than 10% per year is nothing to get happy about. If you project the earnings for the last quarter forward, you are only talking about earnings of about $1.50 or so and with a low percentage growth rate, a P/E or say 15 might seem reasonable. That would only result in a stock price of $22.50. Better than what I paid for the stock, but not a great profit. No, this company needs to see some real growth rates if the price is to ever do anything. --- webb ---