Often when it comes to underfollowed situations, it is all too easy to miss the forest for the headline trees. GSI Technology (NASDAQ: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 (NASDAQ: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, Major Headwind...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|