SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Vitesse Semiconductor
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Robert Sherman who wrote (490)3/20/1997 10:11:00 AM
From: Skeptic   of 4710
 
Vitesse deserves a high P/E. Sales are growing at 56% and margins are steadily improving as capacity utilization and yields increase. Management has publicly stated that business is ahead of expectations and analysts' estimates have been rising. Its currently selling at about 25 times the next 12 months earnings, or a 50% discount to the growth rate. If the P/E stays where it is, the price will increase 60% with earnings. If the multiple gets anywhere close to the growth rate again, its an easy double.

With a rapidly growing market, little competition, and very high barriers to entry, this may be the best story I've ever seen. The risk to Vitesse is the successful completion of their new fab before they run out of capacity. However, if it comes online on schedule, they expect another boost in margins from the switch to 6 inch wafers.

In my opinion, the market's P/E-phobia has created excellent buying opportunites in a number of stocks like Vitesse that deserve those multiples.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News