Thursday, August 9, 2007

Integrated Silicon Solution Inc.

Integrated Silicon Solution Inc. is a NASDAQ listed security that has been trading in a range between $4.23 and $6.95 over the past year. With 37,619,890 shares outstanding, a recent price of $6.30 gives a total market capitalization of $220,828,750. While there are certainly larger companies, Integrated Silicon Solution Inc. has definitely earned its place in the pack. Last year, Integrated Silicon Solution Inc. created $0.01 in earnings for every share outstanding.

Integrated Silicon Solution Inc. is currently priced by the market at 808.70 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Integrated Silicon Solution Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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