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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Taro who wrote (9890)	12/15/1998 11:52:00 AM
From: JakeStraw	Respond to of 11555

From - worth.com "Much of the growth in PCs will come from new low-priced machines that sell for $500 to $1,000. That's not the best news for companies -- such as Intel -- that make high-end (and high-priced) chips. But it should benefit Integrated Device Technology (Nasdaq: IDTI; $6.21), which delivers the lowest-priced Intel-compatible processor. "The sub-$1,000 PC is relatively new, and we'll see more products being tailored to that market," says Kelly Henry, senior analyst at tech research firm IDC in Framingham, Massachusetts. IDT, which makes its own chips, had to write off some of its investment in plants and the like when demand for semiconductors slumped last year. The firm will lose an estimated 50 cents a share in 1998, and the stock fell from $16.50 in February to $5 in October. But at around $50 -- versus $125 or so for a comparable Pentium -- IDC's chip will find its way into many of the new low-priced PCs. Michael Murphy, who in addition to producing his tech-stock newsletter is the author of Every Investor's Guide to High-Tech Stocks and Mutual Funds, figures that should help generate earnings of 50 cents a share in 1999 and $1 in 2000, and boost the stock to $15 a share or so within 12 months".