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PeterGibbons
Joined: 08 Jan 2006
Posts: 128
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 Posted: Thu Jan 19, 2006 4:57 pm Post subject: Cypress Remains 'Significantly Undervalued' |
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Cypress Remains 'Significantly Undervalued'
Forbes.com, 1/19/06
Piper Jaffray research analyst Les P. Santiago maintained an "outperform" rating and $20 price target on Cypress Semiconductor (nyse: CY - news - people ) despite recent layoff rumors that have brought up questions of the strength of the company's core business.
"We note that Cypress remains significantly undervalued at current levels," wrote the analyst in a research note Thursday. "We would be aggressively buying Cypress on any weakness related to layoff market chatter."
Santiago believes that there has been a reduction in force related to Cypress' Network Search Engine (NSE) business in preparation for closure or a potential sale, but he pointed out that this move is in-line with the company's stated goal of harvesting or exiting its unprofitable business segments.
Given the relatively small revenue base as well as the large research and development effort, the NSE business has been consistently losing money, said the analyst.
"Therefore, we view this as a positive step, one that should have a relatively modest positive impact on gross margin and earnings per share."
For the fiscal fourth quarter, Santiago expects Cypress to report in-line earnings of 5 cents per share on revenue of $236 million.
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Peter Gibbons
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iFinancialAdviser
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Joined: 28 Dec 2004
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| Posted: Thu Jan 19, 2006 11:00 pm Post subject: Re: Cypress Remains 'Significantly Undervalued' |
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| PeterGibbons wrote: |
| Santiago believes that there has been a reduction in force related to Cypress' Network Search Engine (NSE) business in preparation for closure or a potential sale, but he pointed out that this move is in-line with the company's stated goal of harvesting or exiting its unprofitable business segments. |
I didn't know anything about this search engine.
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PeterGibbons
Joined: 08 Jan 2006
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| Posted: Mon Feb 13, 2006 3:57 am Post subject: |
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It is hard to believe that a search engine can lose money. What are the costs besides hosting and maintenance? It must be a real piece of crap for them to make that statement.
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Peter Gibbons
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iFinancialAdviser
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| Posted: Mon Feb 13, 2006 7:21 am Post subject: |
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| PeterGibbons wrote: |
| It is hard to believe that a search engine can lose money. What are the costs besides hosting and maintenance? |
R&D?
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PeterGibbons
Joined: 08 Jan 2006
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| Posted: Tue Feb 14, 2006 2:55 pm Post subject: |
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I guess miscellaneous potluck-eating, coffee-breaking, vacation-taking, sick-leave-taking, personal-leave-taking, chatty-kathy overhead staff may have sucked them dry also...
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Peter Gibbons
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