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No. of Recommendations: 1

IDTI is selling at ten times earnings, a valuation which is so unrealistic, given the stock's potential for growth that it's got to be a buy. For
bottom fishers only is the chip sector, and Integrated Device Technology (IDTI, Chart, Boards) is another company on the verge of a turn
around. The stock is at its 50 day moving average, rising on increasing volume, and riding a wave of improving momentum. MACD,
money flow, and on balance volume are all supportive of higher prices. There is resistance at the 50 area. But a rise above 50 could
take the stock 20 points higher.

The company makes logic devices and other specialty and memory chips, primarily for the telecommunications industry. Its most
recent revenue growth shows a 50% rise, with income rising two fold without counting investment gains. Our stance remains the same.
Even a 50% decrease in growth will put the chip stocks in the top tier of growth for a slowing economy. Once investors switch gears,
and that concept becomes obvious, we could see a sustainable rally in the chips.
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