Trident Leads a Slowing Group
Trident Microsystems (TRID - Analyst Report) is a leader in integrated circuits for Digital Television. While its products are used in all kinds of displays, LCD television is its most important growth market as LCD televisions take share from plasma in the market for larger screens as well as traditional CRT television sets of all sizes. Trident has design wins with major television manufacturers, including Sony (SNE - Analyst Report), Toshiba, and Sharp and has added Philips (PHG - Analyst Report) to the list.
While there have been concerns of late that the market is slowing, we feel very confident that the market will grow very rapidly over the next few years. Trident expects to have greater than a 60% share at Sony and claims that its share at Samsung could reach 80%.
The LCD TV market continues to grow, but the poor economic environment and the normal price declines has reduced the near term growth rate in revenue to less than 5% per year. At this rate, most companies in this industry will not be profitable until late 2009.
Despite the fact that the stock is selling at less than cash value the uncertainties of Trident's near-term revenue stream and its high level of operating expenses in the near term we are keeping our recommendation to a hold with a price target of $3.00.
Read the full analyst report on TRID
Read the full analyst report on SNE
Read the full analyst report on PHG
|
|
|
Share |
RSS |
Rate Pos |
Rate Neg |
Comment |
|
|
||||||
Best Stocks. Best Insight. Join Now...it's FREE!
Over 550,000 investors look forward to the timely insights in our email newsletter; Zacks Profit from the Pros. In each daily issue you will find:
- Free Four Zacks #1 Rank "Strong Buy" Stocks
- Free Timely Market Commentary
- Free Wealth Management Tips
- Free Profitable Strategy Screens
- Free Bull and Bear Stocks of the Day
Zacks FREE Registration
X Close
Loading Stories...Most Popular on Zacks.com
More Zacks Resources
Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.
Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.
Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.
My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.
More Zacks Links
| Market Summary | Nov 26, 2009 11:48 am ET |
Sponsored Links

Sponsored Links 
1.05 %

[CLICK TO CLOSE X]