Often when it comes to underfollowed situations, it is all too easy to miss the forest for the headline trees. GSI Technology (GSIT), a small, cash rich developer of SRAM technology, reported its quarterly results after the close on 7/25. In my initial thesis, I noted that the company's financial results were adversely affected by a patent lawsuit levied against the firm by Cypress Semiconductor (CY). Following the resolution of the infringement claims in GSI Tech's favor, I believed that sales would pick up and profitability would improve. Following the results, I believe that the thesis remains valid and significant upside still exists, despite a ~10% run in under a month.
An Excellent Quarter,...
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