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Technology Stocks : Genesis Microchip (GNSS) -- Ignore unavailable to you. Want to Upgrade?

To: RobertG who wrote (289)	3/22/1999 10:27:00 PM
From: nokomis	Respond to of 1277

In case you missed this in January, am reposting it -- should give other longs added incentive to average down...GNSS is, IMO under accumulation by the MMs and institutions... News Story GNSS - NASDAQ By Lori McLeod TORONTO (Dow Jones)--Paradise Electronics Inc. is a "fantastic fit" for Genesis Microchip Inc. (GNSSF) from both a technological and customer-base standpoint, Claude Hazan, an analyst with C.E. Unterberg Towbin, told Dow Jones. Paradise's expertise in mixed-mode integrated circuits for the flat-panel monitor market is complementary to Genesis Microchip's image-manipulation and systems knowledge, Hazan said. While Paradise is about one-third the size of Genesis Microchip, it's growing faster and has higher margins, Hazan noted. He noted the purchase "rounds out the Asian component" for Genesis Microchip, since Genesis has a strong client base in in Korea and Taiwan while Paradise is strong in Japan. By the end of calendar 1999, Genesis Microchip should have a 60-70% market share for graphics chips for flat-panel display monitors, Hazan said, noting it has about 50% of that market right now. The addition of Paradise will be "meaningful" to this increase in market share, and "will really separate the men from the boys in terms of the competition," Hazan noted. Paradise became profitable in its latest quarter, which ended in December, Hazan said. It also has a "pretty clean balance sheet," with debt of about $1 million, Hazan noted. Earlier Monday, Genesis Microchip said it had entered a definitive agreement to buy Paradise for 4.5 million shares. While the value of the offer will depend on Genesis Microchip's share price when the bid closes, Hazan said it's worth about $135 million at Monday's share price. On Nasdaq, Genesis Microchip shares are up 2 5/16, or 7.7%, to 32 1/4 on about about 291,000 shares. (MORE) DOW JONES NEWS 01-25-99 01:21 PM