Around seven months ago, I wondered whether GSI Technology (GSIT)
was an undervalued tech turnaround candidate or a value trap stuck in a
fading market. The story isn't over yet, but the latter option seems
like the more likely one at this point. Not only do companies appear to
be replacing static RAM with DRAM, pseudo-static RAM technologies like
1T-SRAM, and other memory options, but Cypress Semiconductor (CY)
would appear to be faring better in this fading market. A cash-rich
balance sheet (the company's enterprise value is half of market cap at
around $79 million) guards the downside risk, but it's hard for me to
see how the company prospers outside of success in its antitrust
litigation, and that will likely take years to resolve.
Continue here:
GSI Technology Struggles Amidst A Fading Market
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