blast, What about ISSI?

**yhan** Tue Jan 25, 2005 10:09 pm

blast, What about ISSI?
I understand technology stocks are not your favorite. ISSI dropped quite a bit, but it has $4 cash per share with no debt, and now it is about $6.70 and price/book=0.9.

What is your opinion?

**blast_investor** Wed Jan 26, 2005 2:00 am

Here is my quick look:

This stock burn rate is not very high. The stock price is right around the cash level. Balance sheet is pretty good.

The negative part is insider holdings, insiders almost have no stake in this company. If insiders holding % is small, the insiders' interest may not align with shareholders. This is big red flag.

Another issue is its business model. To really make money safely, there must be predictable revenue and profit growth potential with it. This kind semi stock is in cyclical and dangerous sector, which I usually avoid.

I am too conservative to consider this. If the stock price trade significantly below cash level or , there is indication that it will generate positive earning and with some earning growth soon, I may consider it. Right now, ISSI is too risky or not cheap enough, I would avoid it.