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IBDvalueinvestin (98.56)

Needham saying ISSI higher margins are permanent



March 23, 2010 – Comments (5) | RELATED TICKERS: ISSI.DL , INTC , AMD

Needham is reiterating their Buy on ISSI after the co raised guidance on strong
demand and pricing, particularly in DRAM. More importantly, firm says ISSI
raised gross margin guidance to range of 34-38%, which supports their belief
that company is expanding its margin profile. By focusing on specialty memory,
they believe ISSI's margin expansion over the last few quarters should have a
permanent effect on its business model. With higher margins and earnings, firm
believes shares will see further multiple expansion, resulting in a higher share



ISSI today raised eps guidance for this qtr to .20 to .24 or 100% higher than previously expected due to higher margins and higher sales. 

5 Comments – Post Your Own

#1) On March 23, 2010 at 12:23 PM, TMFUltraLong (99.41) wrote:

Integrated Silicon Solutions is a highly cyclical company. When times are rebounding they will more than trump analyst estimates, and when times are bad they'll miss by a mile. ISSI is fully capable of $1.75 a year in EPS in a growing economy and it will cycle back to $18-$22 at this rate, but it makes for a poor long-term hold due to its cyclical industry and call me skeptical that they won't be able to hold those margins for more than 2-3 years.


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#2) On March 23, 2010 at 12:26 PM, IBDvalueinvestin (98.56) wrote:

2-3 years is considered a longterm hold in these times. So I would take that anytime of the day.

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#3) On March 23, 2010 at 12:28 PM, IBDvalueinvestin (98.56) wrote:

Thanks Ultra for the confirmation. This stock should hit $10+ any day now, if not by the close today.

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#4) On March 23, 2010 at 12:35 PM, TMFUltraLong (99.41) wrote:

Here is what I had to say about ISSI back on Aug 11, 2009 when it was trading at $3.36 or so. Analysts'....always late to the party.


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#5) On March 23, 2010 at 12:45 PM, IBDvalueinvestin (98.56) wrote:

Good call Ultra..

Another thing to look at is Shorting short ETF's, You can throw a dart at the short ETF's and short them and make a easy money.

Semiconductor sector is the opposite, you can throw a dart at a list of semiconductors and come out winning going long.

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