Silicon Storage Technology, a provider of flash memory semiconductor devices, reported 4th quarter revenue of $62.8 million and a net loss of $7.7 million or 8 cents.  The company expects similar revenue (+ or - 5% sequentially) next quarter with a loss of 9-12 cents. The loss is due to price declines of their products as a result of the overall economic slowdown. Their unit shipments are actually up and they say they have gained market share. SSTI has a book value of $4.10 per share.  The company has $187.7 million in cash and securities which is $2.01 per share and they have less than half a million in debt. Total liabilities are $58.7 million. SSTI trades at approximately 1x sales. 

     We are looking for a potential double bottom on the chart.  This stock has made big moves up and down over the last 3 years. In October 2002 SSTI had two closes below $3 ($2.90 and $2.98). The intraday low was $2.65 on October 10th and on that day it closed at $3.22. We recommend SSTI at the current price and have a 6 month target of $6.40. Significant resistance is at $8.00. 

 

  Next Closed Pick                      Back to Closed Positions List