Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

GSI Technology May Be Cheap, But It's Not Easy

There is a big difference between "just cheap" and "cheap for a reason", and I have my doubts as to which bucket best describes GSI Technology (NASDAQ:GSIT). While I do believe there is a solid argument to be made that GSI can regain share in the static random access memory (SRAM) market that it lost to Cypress (NASDAQ:CY) on IP litigation worries, Cypress isn't throwing in the towel on this fight.

The bigger concern I have is about market growth. Over the last decade and a half, SRAM has transitioned from a large, high-growth market with numerous competitors to a slower-growing market with fewer players and a much greater reliance on networking/telecom equipment. I do believe...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details