Today's stock grabbing our attention, GSI Technology (GSIT:NASDAQ) shouldn't worry potential investors as it has many similar attributes of tech companies that we have recently discussed. Devoting any time discussing the spartan Web site, minimalist press releases, and perfunctory management team would only detract from what this company does extremely well: posting profits.
According to their latest earnings release, GSI is on a profit roll that many other tech companies can only dream about. For 19 consecutive quarters, GSI has delivered positive earnings. The last time they failed to deliver profits for their shareholders, Red Sox fans were cursing Aaron Boone and wondering if the curse of the Bambino would ever be broken.
As a manufacturer of SRAM, GSI is a one-trick pony. If SRAM were to be replaced by a better technology, GSI's profitability streak would come to screeching halt. We're not too worried about this in the immediate future as companies like Cisco Systems (CSCO:NASDAQ) are increasing their orders of GSI's SRAM. Because Cisco is one of our favorite picks in part because we think they will do well in the third and fourth quarter of this year unless the economy hits a brick wall. Even if that happens, we doubt it will affect their spending with GSI substantially.
Over the next 12 months, we expect GSI to climb to 5 giving investors a nice little profit as the company continues their profitable quarter streak.. As with any micro cap, we do recommend keeping a close eye on this investment but there's no need to add GSI to your iPhone along with the rest of your financial stocks.