I don't understand the lack of interest on this
board. The stock
doubles in less than six weeks, and
breaks out to a fifty-two
week high this week and
all I read are trashy plugs for
I'm embarrassed to admit it but I bought DSPG in
Februry after it was recommended by an internet stock
advisory service. At the time of the recommendation, it
was languishing around 14. I thought their first
quarter earnings report would not help the stock, even
though the company indicated that it would be
So they are changing their product line and I keep
this Audiocodes as if it was the second
coming. Certainly a few
analysts upgrades can't be
responsible for this runup? So what
is going on?
is important, esp. if you know who it comes from.
That requires Level II quotes, which I don't have
(partly due to cost). However, anyone can access
http://www.thomsoninvest.net/iwatch/cgi-bin/iw_page free daily after the market close. Have a look at
the pie chart and those colored triangles. Compare
this chart to other stocks. Today DSPG had more retail
volume than usual. It's been running 90-95%
institutional for the last two weeks (which is
Lenyas- thanks a lot for the Goldman analyst excerpt.
I am a long time holder in this equity, and am
not knowledgeable. To what extent is this stock being
driven up by speculators and day traders? Is volume a
clue? I followed this up once to $42 and then down to
$12, always staunchly holding position. Any thoughts
will be appreciated, Thanx. [By the way, it is my
first time here and I think it is remarkable that this
site exists for this small company.]
If you look at this company's profile and
financials, you will see that it is a good company. Thats why
the stock price is going up.
A rising tide
lifts boats that don't have holes in their
Assuming that the Yahoo! reseach is correct, the
YPEG value for this stock is 30% (5 year future growth
rate) x 1.26 (1999 Earnings) = $37.8. Now Add $7 for
the execess cash and $5 for Audio Codes and you get a
'fair market value' of $50. Personally, I think a
growth rate of 20% is probably more realistic, so I have
set a target value of $37. I would love to hear about
the basis for other valuations.
Here is the quote from GS report:
Group currently trades at a P/E of 18 times and 12
times our 1999 and 2000 EPS estimates, respectively.
However, we believe DSP Group's valuation is considerably
more attractive than the earnings multiple reveals.
DSP Group has a 30% stake in an Israeli IP
communications company called AudioCodes, which has recently
filed a prospectus for an IPO, with a pricing range
$200-$250m. Based on a mid-range estimate of AudioCode's
share price, post-offering, DSP Group's 27% holding in
AudioCodes will likely be worth roughly $55-60m, or about $5
per DSPG share. In addition, DSP Group has roughly
$100m, or $8 per share, in net cash.
stock can easily go to 30's within a week!
I wish I had this information about the IPO
earlier, but it really doesn't change anything
I was a long holder of DSPG, and feel it has alot
But, I'd have to be crazy to stay
long with prices this high, even in spite of the
I knew that this company was
undervalued when it was around $10 and $20, yet it was down
in that range for months. I'll hop back in when the
prices are more reasonable. Either way, I'm way
I sleep better at night with money in my pocket.