11 www.taipanonline.com AUGUST 2004        While camera phones only
accounted for 10% of the 533 mil-
lion mobile phones shipped in
2003, projections are that they
could reach close to 40% by the
time 2006 rolls around. And you
can bet that the wireless carrier
companies will be pushing this
option, since every time sub-
scribers sends a photo, their bills
only get heftier as the company’s
pockets get deeper.        Nokia is projecting global camera phone sales to
hit at least 100 million units in 2004 and 300 million
units by the time 2007 comes into view.        Oversold, with a PEG of 0.41, 60% growth pro-
jected from 2004 to 2005, no debt, and close to
US$4 in cash per share, here’s one company that
stands to benefit handsomely from the future of
imaging technology and the recent downgrade of
the semiconductor sector.        OmniVision Technologies (OVTI:NASDAQ)
designs the CameraChip used to capture images in
a variety of consumer and commercial mass-market
applications, including still cameras, mobile
phones, security cameras and even video game
consoles. Big names like Samsung, LG and
Ericsson use these chips for their products. Of earnings and overreactions When OVTI hit shareholders with news that it would delay fiscal year 2004 results because of a
restatement and lowered estimates for Q1 2005 below Street forecasts, it was reflected in a one-day
30% selloff. The damage was done, leading many
lawyers to push the “sue now”  button on behalf of
investors, alleging misconduct by OVTI manage-
ment.        Whether the lawsuits are waste of time is any-
one’s guess. The restatements were legitimate and
revised upward.        While the company did find errors that affected
the timing of revenue recognition on some sales
numbers, forcing it to restate results for Q1, Q2,
and Q3 2004, the restatement actually added
US$8.9 million to revenue, US$2.7 million to net
income, and another four cents to diluted earnings.        End result—  the stock is oversold. We’re only
here to play the bounce and then we’re out. Bloodbath in Semiconductor-
Land According to stochastics, the stock is clearly oversold at US$13. Legal issues and downgrades
aside, there’s plenty of opportunity to turn a profit
here. The company has about US$4 in cash per
share, no long-term debt and projected 2005 EPS of
US$1.45, which could put this company with a PEG
of 0.41 north of US$20 in the near term. Should the
gap down be refilled, we could see US$25.        According to Merrill Lynch, while stock prices in
the chip sector have already declined, they have the
“potential to decline further.”  The big boys at
Merrill have cut their 2005 revenue forecast for the
sector from 16% to 6%. In order to devote more of our limited print space to bringing you profitable news and information, we are moving the  Taipan  classified ads to our website, www.taipanonline.com. If you are interested in advertising with us, please email Sara Nunnally at snunnally@taipangroup.com. Taipan'sClassifieds Next… Picture-perfect profits and a 0.41
PEG to boot Ian Cooper