Cary,
This selection was more faith than research.
1. I believe that Design Automation is a mandatory requirement for most chip makers to stay in business.
2. I also believe that the leadership changes among CDN, SNPS and MENT
depending upon which company adds the most recent IP library.
3. I further believe that risk / reward for most companies in the sector no longer favours incremental investments. CDN struck me as an opportunity to buy a great company at last October's fire sale prices.
I'll let you know whether this was a leap of brilliance or just another "fool rushing in" next April, possibly much sooner.
Some food for thought:
CDN SNPS MENT
Employees: 4,200 2,592 2,600
Fiscal Year: 1998 1998 1998
Fiscal Year Ending Date: 01/02/1999 09/30/1998 12/31/1998
Sales ($ millions): 1,216.1 717.9 490.4
1-Yr. Sales Change: 31.3% 11.0% 7.8%
Institutional Held: 95.0% 95.0% 86.3%
# of Inst'l Shareholders: 579 466 213
Ticker Symbol: CDN SNPS MENT
Component of: S&PMidCap400 S&P M/C400 S&PM/C400
So, yes, it's the largest, the fastest growing, the best known and, IMO, the most likely to continue to build upon its leadership role.
I now have a 1/2 position, but probably won't add unless the stock becomes an even more exceptional value - something which I don't believe. Worst case, I'll give back a small portion of my Equipment capital gains. ;-)
Perhaps, there's an industry insider that could shed some light on the relative strengths, weaknesses and what might be a specific trigger for CDN's recovery.
If we can't find someone here, we could probably go back to the blood thread and get some answers. |
