I believe Xicor is extremely attractive for purchase at $4.
Xicor is close to completing its Digital Signal Processing Chip (DSP) which is a segment of the chip market that is projected to have very rapid growth over the next several years.
Other new, recently announced products such as a new controller and a Smart Card and Smart Card chip, should help to generate sales growth in 1998.
At $4 Xicor is selling at 1.2 times book value of $3.30.
At $4 Xicor is selling at a Price to Earnings ratio of only 5 times estimated 1998 earnings of $.80 per share.
Long term debt as a percent of capital is low at only about 18 to 20%.
Year end tax selling is over in 2 weeks and the January Effect should be kicking in right about now, as bargain hunters step in to buy up those stocks that have done poorly in 1997 in the anticipation they will do better in 1998.
3 Semiconductor chip manufacturers are delaying and possibly even cancelling the opening of new chip making plants, as reported in the Wall St Journal on Dec 11 and 12. In 6 to 9 months this should help to alleviate overcapacity and result in a slower rate of decline in chip prices, a stabilization in prices, or possibly even an increase in prices. This would increase chip makers profits.
Chip making plants delayed (may never be built) as reported in The Wall St Journal: Dec 11--SGS-Thomson (Franco-Italian), Dec 12--Dongbu Group (South Korean), Dec 12--Hyundai (South Korean).
Despite recent turmoil in South East Asia The Wall St Journal reported on Dec 12 that world-wide chip sales rose by 12% in October 1997.
Xicor, having reported disappointing earnings per share in 1997 will have easier comparisons against which to report in 1998.
Xicor has great upside potential from these levels and little downside risk.
An old Wall Street adage recommends, "Buy when there is blood in the streets".
for the delay in responding to your post wherein you write:
"In 6 to 9 months this (delay in opening chip-making plants) should help to alleviate overcapacity and result in a slower rate of decline in chip prices..."
Regarding Xicor's price, this is what I see for the future. First the past: It is noteworthy that in all of the following years save one (Feb,1992; May,1993; Jan,1994;
Apr,1995; and Mar, 1996) when Xicor's
50-Day Moving Average, it's 200-Day Moving Average and it's Stock Price all converged to a point, Xicor's STOCK PRICE WOULD THEN BREAK ABOVE THOSE AVERAGES-MOVING HIGHER.
I predict that this will again occur in October 1997, in May of 1999, and on the anniversary of the tyrant Hister's death in a YEAR who's date, if TURNED OVER, and read as two words from THE OUTSIDE IN, would say:
Its closing price ON THAT DAY,
Written in the LANGUAGE of its MACHINES
will be two of what the money changers
see as one....
The time that day will be marked by a prophet
who will say:
"Bingo, Bingo, Bingo".....
that was a very brave attempt at being cryptic, although it may have helped had you been correct,
"in a YEAR who's date, if TURNED OVER, and read as two words from THE OUTSIDE IN, would say:
A 2 turned over is still 2 shaped, or "Z" shaped, if you will. To get an "S" out of a "2" you would need a mirror image. Perhaps you meant to say "flipped over". The word "turned" implies rotation. You turn a door knob, and you flip a light switch... get it?
And you predicted the actual current price rather than the future price. On a score of 1 to 10, I'd give it a 6 for entertainment value.
Obviously, the answer must be 10.
Hitler committed suicide in his bunker on
April 30,1945. Readers of Nostradamus believe that Hister (Hister sera - lower Danube) is a reference to Hitler. (http://www.geocities.com/Athens/4051/2001/ef010909.html)
Moreover, 2002 is a date which, if turned over, and read as two words from the outside in, would say:
Its closing price on that day, written in the language of machines (binary?) will be two of what the money changers see as one.
I am takeing a little break from posting. As we all know, this is the Hotel Xicor, and we "can check out, but we can never leave". If history is any guide, I will be back posting before you know it. In the meantime, I wish all the Xicor longs big gains on their Xicor stock. I know that I am hanging on to mine. I believe at this point, Xicor is about as close to being on "automatic pilot" as is possible for a stock. And I mean that of course from a bullish perspective. I think the next year or two for Xicor is a "slam dunk". Small-cap stocks like Xicor are currently one of the few areas of the stock market that is doing relatively well. And of course there is a long littany of bullish factors, both from the fundamental and technical analysis viewpoints, that support much higher prices for Xicor. So I feel very comfortable just sitting back and watching our "hot little mixed-signal IPO" rocket upward. As I have posted recently, I believe this next rally will carry Xicor up above its recent rally peak of 11.45. If Lou is able to continue releasing positive press releases that weave a trail toward prosperity, and is able to deliver significant sales and earnings gains in 2003, I believe Xicor will be in at least the 20's by year-end 2002.
Now let's all just enjoy this upcoming ride. We deserve it. Many of us longs have been Xicor holders for a considerable length of time, and have sweated through the hard times. Now, I am looking forward to the good times. The bad times will make the upcoming good times that much sweeter. My best to all of you Xicor longs.
XICO has dropped an additional 12.5% since my msg about using charts (#27) to decide when to buy. I said this stock is in a
down trend and it continues unabated. I don't know where the bottom is. Nobody knows. I've read messages from people who have
been buying from much higher prices all the way down. Never buy stocks that are trending down. It's way too risky. Wait till
XICO's chart looks more like a flat line than a downward slope. When that occurs, the next move is usually up. Patience.
Are you working for a semiconductor related company? It seems that you are watching the big guy as well as the tiny small guy(INC & XICO). I purchased XICO from 9 to 4 1/4. I hope this company really make money this year. It is very hard to find a SEMI company with such a lower PE ratio. Many of XICO product is low end but cost of manufactory them is also low. . All we hope is no earning surprise.