I believe those estimates are VERY credible, especially with DDR2 heating up. These estimates also do not include royalties paid by Samsung, the worlds largest memory maker, which won't even go to trial until sometime in 2004 (or later). In the article that poobah10007 posted, it states that Samsung is accusing Tessera of fraudulently obtaining its patents by failing to disclose its intellectual property. If this was the case, I would think TI and Sharp would have pounced all over this in court a couple of years ago. I think Samsung is litigating because, based on the financial implications, they can't afford not to.
fe4o3, again my apologizes for blasting you earlier. but your subject title on your post came off as a typical "dump" sensationalism...
I agree on an EPS basis, valuation is quite high. This is a very speculative stock at high teen's/$20's... and will be only supported by some pretty aggressive rev/earning growth assumptions...
IMHO stock got ahead of itself when it got run up to $22. rather see it languish around 17-18 while momentum and coverage gradually builds up on TSRA once the analyst coverage moratorium ends soon.
while semi stocks are getting battered this month, we're just coming out of the trough in terms of the semiconductor business cycle and TSRA has a lot to benefit as the mkt grows.
not just cellphone chips, but memory and other IC's...
My posting were due to the fact that the estimates I saw, were not being supported by the tecnicals.
Based upon cuurent EPS the stock is quite high , if the projected revenues and EPS was per what I saw, I would have expected better technicals.
Evidently only a few people saw the information
and prrchased, running it up to $22. I didn't chase the stock. I was merely looking for some confirming information on this board.
Yahoo was reporting net insider selling.
I got blasted, as an idiot for what appeared to be an assumption that I was either a basher or just not welcome as a new participant on this board.
Anyway I appreciate the ones that came to my rescue and provided insight into how to better digest some of the information that is available.
Thank you for the detail and direct reply. I've been watching this since November.
An institution I'm aware of purchased 12500 shares on Nov 30 @$18.25. They provided the following estimates.
2002 2003E 2004E
Revenue 28 37 55 millions $
EPS .16 .22 .35
Based upon what you say, this looks pretty Credible.
As I mention before, net they hold about 5.5mil shares of TSRA, or 14% after that Nov 18 transaction. link to actual Form SC 13D below.
Yahoo says the insiders are on net selling!
NASDAQ says the net insider trads are SALES: