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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: epicure who wrote (29348)7/7/2008 10:50:34 AM
From: Paul Senior  Read Replies (3) | Respond to of 72180
I'll add a little to my losing position in Trident Microsystems now.

[t]TRID[/t] is selling close to cash value (3.88 cash/cash equivalent, with no ltd, per Yahoo; $3.50/sh net cash per Barron's)

Per Barron's, 7/2/08:

"Sales are expected to fall 30% in the fiscal year ending next June, and profit could fall from 79 cents this year to just seven cents.

Catastrophic, to be sure, and perhaps already stimulating buyers of Trident stock.

If Trident's new graphics processor can win back some business at manufacturers such as Samsung and Sony, the appreciation in the stock price would show up long before any of that turns into sales growth, even while profit is still in decline.

Meantime, there's a floor for the stock at the current price, says Quinn Bolton, who follows Trident for Needham & Co.

"The stock is trading in line with cash on the books," he says. "It should be worth about one times next year's sales, or $6.50, a level typical of depressed semiconductor company stocks.""