MoSys, Inc. (NASDAQ:MOSY)

to much risk with revenue and collecting accounts recievable

$35M payment from Investas for tech IP more than doubles its highest annual revenue over last 4 years.

I think big things will come from this company

four star stock on sale

It is hard to see why this stock should go up in the near-term. MoSys has had losses from operations the last three years.

Pros: Large amount of cash and short-term investments. No debt.

Cons: SG&A cost have increased since 2002 while revenue has decreased. Five year revenue growth -7.89%. Low ROE...no surprise there. High P\E.

holds IP on memory used on the Wii.

MoSys Inc. (MOSY) design, licenses and markets, memory technology, which are embedded in integrated circuits. The company generates revenues by licensing its technology and from royalty fee, with customer profiles include System-on-chip semiconductor companies and electronic companies.

Revenue increased by a modest 0.20% for the nine-month period ended September 2006 mainly due to a 14% increase in licensing revenue from the licensing contracts signed during quarter. This increased the share of licensing revenue to 74% of total revenue. Meanwhile, revenue from royalty dropped 25% as a result of decrease in the contribution from Gamecube chip royalty fee. This decrease was the main reason for the lackluster performance by the company.

The market for semiconductor chips has reached $247 billion globally during 2006 and is expected to touch $277 billion by 2007. This increase can be attributed to electronics appliance market that utilizes most of these semiconductor chips and thus in turn the memory technology. Innovations in this field have resulted in falling prices for most of the consumer electronics products, thus making the market lucrative. Demand for High Definition TV’s, audio and video players, gaming consoles have gone up due to this and is expected to continue in the coming year too.

The year 2007 will also see more and more products, which will be packed with, enhanced features like extra memory, more battery life and improved quality in both video and audio streaming. These require integrated chips featuring more memory space, which are far more efficient. Also major chip manufacturers like Intel are planning to come out with faster chips for the dual core servers that are supposed to roll out this year-end. MoSys has been gearing up to meet all these challenges and opportunities with increased research and development spending and by offering latest memory technologies. Endorsing this backdrop, the company stock is expected to do well in 2007.

Recent drop in a solid stock -- due for a rebound.

No debt, buncha cash and trading low for a company with that many heave weights as partners...

Why didn't I pick this one up already?
The future looks rosey for these guys with many interesting contracts in play and some respectable financial stats...

Creates technology for one of the year's hottest items - the Nintendo Wii. MOSY also supported the Gamecube in 2001, which was a flop, but still propelled the stock to over $20. Wii should ramp it up at least that much by March.

11/30/06 I was attracted to MOSY by news items indicating it was a play on the Nintendo Wii. Since the Wii seems the people's video game console choice this Christmas, MOSY should have great short term traction. Published reports estimate 60 cents to MOSY for every Wii sold.

Longer term, Fujitsu is licensing MOSY's memory technology, which speeds memory transfer for System on Chip devices, for their 65 nM process chips.

While MOSY's fundamentals are not good, institutional investors in aggregate are liking MOSY's future prospects. In view of MOSY's short to mid term boost from Wii, now may be the best time to follow the institutions and take a position. By next earning's report, Wii will have MOSY moving faster than a walk!

Late to the party. But I see plenty of upside, and am willing to pay a premium on CAPS. I like MOSY for same reason I like CEVA. Market demand is heating up in this sector. 2007 should be stellar. Nintendo is the kicker, but is NOT the only growth driver.

Recent reviews of Wii are surprisingly positive. Attractive to “regular people” – not just game fanatics. Market might be larger / broader than anticipated. If I had understood all this before, I would have jumped on MOSY when it was TINY.

S&P Fair Value = $7.10 (Overvalued). Insiders = 23%. $83 million in cash ($2-3/share). 8% short. 2 Analysts cover. Consensus 35% 5-year growth rate.

Nov 21 2006 Seeking Alpha – excerpt: “MoSys licenses IP to chip makers and its memory IP is embedded in each graphics chip in the Nintendo console. MoSys sees about 60 cents of revenues for each console sold. Not a bad clip for a company with little more than 15 million in revenue last Quarter. Add the fact that MoSys operates on ~90% margins, and you can see the benefit to earnings for MoSys.
This little known semi company has created a nice little niche for itself in the embedded memory system-on-a-chip market, a fast growing chips segment that is heavily used in consumer electronics. Given its attractive windfall from the surging Nintendo popularity, and its bright growth prospects moving into next year, MoSys makes for an interesting play on the under appreciated consumer electronic and semi segments. And more importantly, a pure play on Nintendo popularity.”

New method

IP is being used in the Wii.

Uniram litigation settled, no debt, Nintendo, Fujitsu, other big contracts kick in during 07

5-star $239 million market cap on 11/11/06
Semiconductor memory.
5STARsmallCAPS picks five star stocks with the smallest market caps.

Will make big money if Nintendo's wii makes it big. Its sales tend to be lumpy, but this next lump will be a big chewy tasty one. No debt.

Nothing but growth in this market.

two words: Nintendo Wii