Integrated Silicon Solution, Inc. (NASDAQ:ISSI)
The Company is a fabless semiconductor company that designs and markets performance integrated circuits for the digital consumer electronics, networking, mobile communications and automotive electronics.
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good cash flow
no debt
makes products for memory specalization
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Long Term outperform.
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Small cheap and under-followed. These are a few of my favorite things.
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Interesting
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Fabless semi co. with most of sales in high quality specialty memory products. Microcap under $200mm valuation with 26mm shares trading at ~2.1x net cash of $3.51/share, ~1.2x tangible book, .3x sales adjusted for cash, and generating modest operating FCF. Only two well-known firms covering it. Making inroads into global automotive markets. Spun off money-losing and cash-eating unit that accounted for ~8% of sales. Breakeven quarterly revenues run rate slashed to ~$40mm. Inventory turns rising and A/R days declining. Decent margin upside. Currently depressed due to investor concerns regarding DRAM and semi space sales momentum.
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P/E is golden at 4.7. EPS of 1.56; I think this is a miss by the market and its very underpriced. Picking it up since its on sale. Projected growth of 10%. To get up to P/E of 10 means double in price at least, and I think its headed there.
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target $10+
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Thanks to the earnings miss, they should open lower. Still banking on an estimated 2011 EPS around $1.50
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Integrated Silicon Solutions was selected from a value screen I use that looks for low forward p/e's, high ROEs, low price book and reasonable price trends. The screen typically outperforms by a wide margin and does best in up markets. ISSI happens to be a highly solvent, cash rich tech company that is experiencing positive earnings trends.
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They are running on all cylinders...
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Integrated Silicon Solutions, Inc, looks promising to me at the sub $9 entry price. Fabless semiconductor companies, especially in consumer products are starting to see a decent rebound. Integerated Silicon Solutions gaved back 30% in the last month from this market correction. Seems it took more than it's share considering that it was showing stability and growth. No debt. $3 per share in cash. I'm in at a discount to some top fools that I follow. Total Revenue has increased sharply, and steadily the last four quarters, taking Integrated Silicon Solutions from a quarterly loss to two strong quarterly wins, with more upside predicted. Nice mix of large investors and 18% insider ownership. Cash flow solid. Inventory cut in half yoy. While Integrated Silicon Solutions has been pushing new 5 year highs, a few more quarters of increased growth and this company should be well positioned to reward patient investors.
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doesn't stand out from competition
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Intergrated Silicon Solutions has always been a cash cow but I cant believe how long its taken for them to live up to earnings expectations. I feel with their business becoming so commoditized that they've not differentiated themselves from the competition enough. Give the company some time to change direction and maintain strong profitability and build on that sweet basing long-term chart and I think we could see double digits yet again!
Nero
Sagetrade
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issi is worth about $5.50 on paper and is trading just over $6.00. Its a safe bet and it should be taking of soon, especially after its grat earnings report just came out.
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I've watched this one as a possible China play, but poor execution and focus on managements part
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