SILC

[David Randolph]

Dave can you do a video on SILC when ever you get a chance? Take your time no rush I plan on holding SILC for a couple of years.

Sure, here it is:

I believe 2007 and 2008 will be spectacular years for SILC, but over the longer term it depends on the company's ability to keep developing new products.

I'll continue holding SILC.

[danman3459]

News!  Woot. 

Fortune-100 WAN Optimization Customer Orders - $1.2M of Silicom's Bypass Products
Monday March 19, 8:37 am ET
-- Explosive Growth of WAN Optimization Market Continues To Accelerate Silicom's Momentum --

KFAR SAVA, Israel--(BUSINESS WIRE)--Silicom Ltd. (NASDAQ & TASE: SILC) today announced that a Fortune 100 leader of the Internet Networking industry has ordered Silicom products valued at approximately $1.2 million. Silicom will deliver advanced BYPASS adapters to this recently-announced Design Win in three separate shipments over the next three months as required to meet the customer's WAN Optimization appliance manufacturing schedule.

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These sizeable shipments, the largest that Silicom has shipped to this prestigious customer since securing a Design Win with them in late 2006 (as reported in December 2006 - http://www.silicom.co.il/pgx.php?p2=396), confirms the importance of the WAN Optimization market as a growth driver for Silicom. The fact that Silicom has won three Design Wins from major WAN Optimization market players demonstrates that its BYPASS adapters are increasingly perceived as the WAN Optimization industry's continuity solution of choice. The BYPASS adapter's ability to automatically reroute traffic around non-functioning components enables WAN Optimization appliances to assure continuous traffic flow in all conditions, safeguarding against network disruption of any kind. As such, BYPASS functionality is necessary in practically all WAN Optimization and gateway appliances.

"The explosive WAN Optimization market started to be an important target market last year and has become an important incremental growth driver for Silicom," said Mr. Shaike Orbach, President and CEO of Silicom. "The Design Wins that we have secured with WAN Optimization players have significantly expanded our platform of potential repeat sales, and have also made it easier to penetrate new customers in this exciting market. As an industry just beginning its growth trajectory, we believe WAN Optimization is a huge opportunity with the potential to become one of our primary revenue drivers."

About Silicom

Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.

Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties, or other factors not under the Company's control, which may cause actual results, performance, or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission. The Company disclaims any duty to update such statements.


Contact:

Silicom Ltd.
Eran Gilad, CFO
+972-9-764-4555
[email protected]
or
Investor Relations:
GK Investor Relations
Kenny Green / Ehud Helft
1 866 704 6710
[email protected] / [email protected]

Source: Silicom Ltd.

[David Randolph]

Thanks for posting the news danman3459

«Silicom Ltd. today announced that a Fortune 100 leader of the Internet Networking industry has ordered Silicom products valued at approximately $1.2 million.»

SILC sold $5 M in Q4 2006, just this order is 24% of that. We hope there are more to come. The stock opened a gap at the open and maybe it will come back down to close. Or else it will rise and breakout above $16. I really don't have a clue about the short term developments.

But fundamentally, as you can see on the video analysis above, I see SILC as one of the most attractive picks I've ever found and I'll keep holding the stock.

[David Randolph]

SILC failed to close above the $16 short term resistance level, but that doesn't matter much for the long term outcome of this investment. I've watched my video above again, and I guess I'm pretty aggressive on my 2007 estimates, expecting 100% revenue growth from 2006, I hope it isn't too much. Over the longer term I expect "just" 30% average annual revenue growth.

I'll keep holding SILC.

[yukiii]

Sold today nice gain
Thanks
David

[eggman11]

Thanks for posting the news danman3459

«Silicom Ltd. today announced that a Fortune 100 leader of the Internet Networking industry has ordered Silicom products valued at approximately $1.2 million.»

SILC sold $5 M in Q4 2006, just this order is 24% of that. We hope there are more to come. The stock opened a gap at the open and maybe it will come back down to close. Or else it will rise and breakout above $16. I really don't have a clue about the short term developments.

But fundamentally, as you can see on the video analysis above, I see SILC as one of the most attractive picks I've ever found and I'll keep holding the stock.

You said SLIC was one of the most attractive picks you have ever found, yet you did not include it in the 3 stocks on fire portfolio. How Come? I can see a pullback to the 14 area near the 10 DMA to consolidate this recent run-up, before hitting new highs.

[David Randolph]

Thanks for posting the news danman3459

«Silicom Ltd. today announced that a Fortune 100 leader of the Internet Networking industry has ordered Silicom products valued at approximately $1.2 million.»

SILC sold $5 M in Q4 2006, just this order is 24% of that. We hope there are more to come. The stock opened a gap at the open and maybe it will come back down to close. Or else it will rise and breakout above $16. I really don't have a clue about the short term developments.

But fundamentally, as you can see on the video analysis above, I see SILC as one of the most attractive picks I've ever found and I'll keep holding the stock.

You said SLIC was one of the most attractive picks you have ever found, yet you did not include it in the 3 stocks on fire portfolio. How Come? I can see a pullback to the 14 area near the 10 DMA to consolidate this recent run-up, before hitting new highs.

I'm still getting used to the new format of the 3 Stocks on Fire Portfolio eggman11. SILC is amazing, but the two stocks which I believe have the most potential in the Main portfolio are CIMT and GIGM. But it's always hard to know which are the best, that's why I look to own 15 different holdings, instead of 3.

Give me some time, this is a tough job, thank you

[lancefur]

Thanks for posting the news danman3459

«Silicom Ltd. today announced that a Fortune 100 leader of the Internet Networking industry has ordered Silicom products valued at approximately $1.2 million.»

SILC sold $5 M in Q4 2006, just this order is 24% of that. We hope there are more to come. The stock opened a gap at the open and maybe it will come back down to close. Or else it will rise and breakout above $16. I really don't have a clue about the short term developments.

But fundamentally, as you can see on the video analysis above, I see SILC as one of the most attractive picks I've ever found and I'll keep holding the stock.

You said SLIC was one of the most attractive picks you have ever found, yet you did not include it in the 3 stocks on fire portfolio. How Come? I can see a pullback to the 14 area near the 10 DMA to consolidate this recent run-up, before hitting new highs.

I'm still getting used to the new format of the 3 Stocks on Fire Portfolio eggman11. SILC is amazing, but the two stocks which I believe have the most potential in the Main portfolio are CIMT and GIGM. But it's always hard to know which are the best, that's why I look to own 15 different holdings, instead of 3.

Give me some time, this is a tough job, thank you

I applaud this great pick. The market is a tough thing to understand at the moment with all the "junk" that's going on. SILC is up 30% so far and that's a great pick in my book. One cannot hit 30% picks all the time so awesome stuff.

[eggman11]

Thanks for posting the news danman3459

«Silicom Ltd. today announced that a Fortune 100 leader of the Internet Networking industry has ordered Silicom products valued at approximately $1.2 million.»

SILC sold $5 M in Q4 2006, just this order is 24% of that. We hope there are more to come. The stock opened a gap at the open and maybe it will come back down to close. Or else it will rise and breakout above $16. I really don't have a clue about the short term developments.

But fundamentally, as you can see on the video analysis above, I see SILC as one of the most attractive picks I've ever found and I'll keep holding the stock.

You said SLIC was one of the most attractive picks you have ever found, yet you did not include it in the 3 stocks on fire portfolio. How Come? I can see a pullback to the 14 area near the 10 DMA to consolidate this recent run-up, before hitting new highs.

I'm still getting used to the new format of the 3 Stocks on Fire Portfolio eggman11. SILC is amazing, but the two stocks which I believe have the most potential in the Main portfolio are CIMT and GIGM. But it's always hard to know which are the best, that's why I look to own 15 different holdings, instead of 3.

Give me some time, this is a tough job, thank you

Do you plan to add GIGM to the 3 stocks portfolio?

[David Randolph]

Sold today nice gain
Thanks
David

Hi yukiii, you sold this one, and it rose another 7% yesterday. You shouldn't trust your hot hand to trade, because hot hands suddenly become cold. But, good luck on your short term trades

I applaud this great pick. The market is a tough thing to understand at the moment with all the "junk" that's going on. SILC is up 30% so far and that's a great pick in my book. One cannot hit 30% picks all the time so awesome stuff.

Thanks for the encouraging words lancefur

Do you plan to add GIGM to the 3 stocks portfolio?

Yes I do.

As for SILC, it closed at a new 7 year high yesterday, at $16.9. There wasn't any news out. I'm looking for $6-7 M in revenues in Q1 and about $0.25 EPS, that would be enough to confirm my full year 2007 estimate. Let's see what the company can do.

I'll keep holding SILC.

[yukiii]

Sold today nice gain
Thanks
David

Hi yukiii, you sold this one, and it rose another 7% yesterday. You shouldn't trust your hot hand to trade, because hot hands suddenly become cold. But, good luck on your short term trades

I have been in SILC on and off over a years, put it all into WPCS up 18% in a week good for another 50% from here.

[David Randolph]

I have been in SILC on and off over a years, put it all into WPCS up 18% in a week good for another 50% from here.

Wow, congratulations yukiii

SILC closed at a new 7 year high today, but volume declined a bit and the stock closed off its highs. So, should I sell it now and try to buy it back lower? Of course not, only yukiii can do that.

As a cold hand long term investor I need to trust long term fundamental analysis to invest in stocks. My analysis says SILC is experiencing strong revenue growth and it has a net profit margin of 21.25%. If revenues expand 100% in 2007, they will be $32 M and net income will be something like $6.8 M, or $1.33 per share.

The Networking & Communication Devices industry has an average earnings multiple of 35.51, so, if my estimates are met and SILC trades at an average valuation (it should trade at a higher valuation, because its growth rate is much stronger), SILC will end 2007 at about $47.18.

These are the calculus and thoughts I need to consider to keep holding SILC. Not the volume or the chart.

I'll keep holding SILC.

[sfhappyfish88]

Dave, when I click on MSI on the mail portfolio, it always links to SILC, not sure what is wrong. Could you please look into it? Thanks!

[David Randolph]

Dave, when I click on MSI on the mail portfolio, it always links to SILC, not sure what is wrong. Could you please look into it? Thanks!

Thanks for reporting the problem sfhappyfish88, it is fixed now.

On Friday SILC opened down 4% to retest the $16 support, prior resistance, and then claw back up all day to finish down 1.22%. I have a 35% profit in this trade, but I'm not selling, as I expect more gains in the future, as fundamentals keep improving.

There are rumors the Fortune 100 company that ordered $1.2 M in bypass adapters from SILC was Cisco, and if that's the case, probably there will be more to come. $6 to $7 M in revenues for Q1 would be enough to push the stock to the mid $20's, as that would represent 20 - 40% sequential revenue growth from the $5.02 M reported in Q4 2006. I'm also interested in seeing if the company will be able to maintain a 20% plus net profit margin, that's very important.

I'll continue holding SILC.

[David Randolph]

I'm glad SILC spent $1.81 M in Research & Development in 2006, above the $1.56 M spent in 2005, because innovation is my biggest concern about SILC and its promise of being an outstanding long term investment.

Because, for example, let's take a look at HAUP, a somewhat similar play, since it makes peripheral components to computers (OK, with SILC we're talking about servers and SILC sells to businesses, whereas HAUP sells to consumers).

Anyway, I consider them similar businesses. The difference between them is the rate of growth given by innovation being superior in SILC.

But, for example, HAUP is a $70 M market cap with fiscal 2006 revenues of $97 M and SILC is a $87 M market cap with just $16 M in 2006 revenues.

For 07 I expect SILC to deliver $32 M in revenues and EPS of about $1.33 per share. This would be great and I believe in these estimates, because the next two years seem very promising for SILC.

But over the longer term, if the company doesn't keep innovating and bringing new products to the marketplace, its multiples will shrink like it happened with HAUP when the market started considering its products will become obsolete as time goes by.

For now everything is right and I'll keep holding SILC for the long term, writing new thoughts everyday about this investment.