I saw this LSI annoucement from yesterday, which suggests to me that DSPGroup could face competition in the DSP area:
Siemmens could be a pretty serious competitor.
Do you have an opinion about DSP companies that
focus soley on DSP technology vs. those that have
several areas of focus? As you mentioned TI makes DSP
chips, but has many other products and for example DSPG
has a focus on just DSPG. The growth for DSP chips
and support looks good. I wanted to invest in a small
company that could focus on the market and stayed away
from the larger companies with multiple products. I
wonder in your opnion it is short sighted not to invest
in TI, Lucent, etc.
Are there other companies in
this area that you like?
I happen to be a DSP programmer who owns this
I don't happen to program on any of
DSP Groups cores currently,
but we do plan on
looking into them for future products.
the point of this post is that I don't believe that
Lucent has the "best DSP on the market" by any stretch
of the imagination. They hold only about 28% of the
market (vs 45% for TI), and I personally find that
Analog Devices makes the best ones (hardware, not cores)
that I have compared and used based on price vs
There is plenty of room for many people in the market,
since there are so many different applications. Best
can be determined by price, performance, tools,
available software, peripherals, etc., and of course any
combination of the above.
On the other hand, I too
don't see why Lucent would be interested in DSPG...
when there are so many grossly overvalued stocks
why would anyone short
dspg----projected 1999 PE of 13,
28% projected annual earnings
increase over next 3 years,
net sales per
employee=$1,000000; 10% stock buy back plan ;
oakcore---palm core due in early 99( probably the best core on
the market), not in the chip manufacturing business;
lsi logic soon to ship chips based on
stock probably 30-40% undervalued
Why in the world would Lucent want this company?
already have the best DSP on the market, and the
and only incredible Bell Labs as well.
someone wanting to get a quick rise in the price
they can bail, or short.
For those who don't have time to review the annual report, here are the list of licensees (there are two lists - one for DSP core and another for Truespeech)
DSP Core - Adaptec, Siemens, GEC Lessey, Harris Semiconductors, Hyundai, NEC, Kawasaki Steel, Rohm, Xicor, VLSI Technology LSI Logic, Atmel, Samsung, TSMC, Fujitsu
True Speech - Analog Devices, Cirrus Logic, Creative Labs, Dialogic, IBM, Intel, Lucent, Microsoft, NEC, Olympus, Philips, Picturetel, Rockwell, Siemens, Texas Instruments, Unisys, US Robotics, 8 x 8
Of course, we now know about NSM and Xemics.
If you are a shareholder you should keep you eye on news items from any of the above companies especially as it relates to new products.
My question (maybe Tom Caruther from SI board (who seems very knowledgeable regarding this technology) is which technology
has the most upside, the DSP cores (teak, etc.) or the TrueSpeech? It certainly seems like the big hitters are on the TrueSpeech
side, should DSPG receive any type of revenue stream from truespeech products by IBM, Intel or Microsoft, this stock would
skyrocket. It seems like (in my amateur opinion) this must be down the road a little bit (videoconferencing, internet telephony?) since
you don't hear much regarding these items. Any comments regarding this technology, its prospects and its competition would be
very much appreciated.
I forgot one more downside is if officers continue to file to sell shares. Let's hope they follow my name (patience rewarded) and wait for these great things in the pipeline they couldn't speak about on the conference call.
to 21 1/4 as of this post (up 13/16). With the quarter out of the way, there is definitely more upside than downside until the next quarter.
Upside - new licensees announced, products by licensee start hitting the market, company buys more stock back this quarter than last (if they bought 100K at 24, why wouldn't they buy 200+ at an average of say 22?), 2 conferences between now and next quarter release, what about a take-out (doubt it but anything's possible!)
Downside - Competitors (i.e. Siemens, Lucent, etc.) announce DSPG wins with potential licensees., nothing else company specific although there is always market risk (i.e. market correction).
I'm taking my chances with the upside this quarter.
This company seems to have people in charge that can be believed. One of the coming quarters is gonna be a blockbuster, and this stock will blast forward. I missed yesterday (not by choice....just workin' too hard), but be assured I will CONTINUE to accumulate below 20. I really, really, really like this company AND this stock. As one of those there "value players", does it get any better than this?