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

To: Rob S. who wrote (10195)	4/13/1999 12:49:00 PM
From: musea	Read Replies (1) \| Respond to of 11555

Rob, Thanks for the well-thought-out reply. It appears then that there is no easy fix for IDTI. The various pieces of the business are either potentials or moribund or insignificant. What then sustains IDTI at all? What I have been hoping for (and perhaps getting, you never know) is that IDTI will stake out small but viable niches in the various markets it targets. For example, the switching chips and ClearLogic, provided they can expand their reach to make them more interesting. Centaur is kind of a mystery, because there appears to be a continuing market for their seemingly uncompetitive chips. I suppose it's the absolute low cost market. National is a non-issue, as far as I can tell, and AMD is too busy falling on their own swords to pose much of a threat. My guess is that I should rotate out of my IDTI during cyclical peaks. I've kept it for so long that I've forgotten why I continue to keep it. It's a small-enough stake that I don't keep tabs on it regularly, but I need to clean house now. -musea

To: Rob S. who wrote (10195)	4/14/1999 11:36:00 AM
From: Rob S.	Read Replies (2) \| Respond to of 11555

Recent analysis of trends in the PC and digital wireless markets point to a shift of emphasis from the PC and towards digital wireless Internet devices. These already include some interesting and useful devices but the industry is still in it's relative infancy. New wireless pdas in many varieties will come out that include such features as e-mail fax, e-mail voice messaging, web surfing, stock portfolio management (in addition to what you can find on the web itself), built-in spreadsheets and webified contact managers and schedulers. The future is clearly headed toward portable and wireless devices. In that world, the x86 architecture becomes increasingly more of a commodity. PC's will be given away for service and e-commerce revenue. Rapid change is occurring. IDTI has many products that sell into the communications sectors - that is the biggest market segment for IDT. They don't have much to loose due to the shift away from PCs. While IDT has too few areas where they dominate or have proprietary intellectual property, the decision to shift away from PC oriented SRAMS was a logical one. The way management went about it - building a large new fab at the peak of a major demand period was ridiculously faulted and something they are still paying for. Maybe next year?