From Stockwinners.com(Today's rumor) Extra, extra.......
PMC-Sierra (PMCS) develops networking semiconductor components that improve transmission speed and performance on the Internet and other high-bandwidth networks. PMC-Sierra makes asynchronous transfer mode (ATM), Ethernet, and other devices that are used in LANs and WANs for switching, mapping, protocol conversion, high-speed transmission, and multiplexing. Other network equipment manufacturers, including 3Com, Cisco Systems, and Lucent Technologies, integrate the company's products into their own Internet, remote-access, and corporate data networking applications. PMC-Sierra offers support services in Asia, Canada, Europe and the US. We are hearing rumors that the company may soon split its shares. The firm is authorized to issue up to 200 million shares, of which, 63.4 million are outstanding and 15 million are reserved for the employee stock option plan. That leaves 121.6 million available for issuance, thus enabling a stock split. PMC-Sierra most recently split its shares 2-for-1 in May of 1999, at a price of $105. Shares last traded at $106 3/4, up 4 on the day. The combination of these facts suggests the split rumor may indeed be true. The company will announce quarterly earnings on October 14, an event at which many companies announce splits. Analysts estimate the company will earn 90 cents per share in fiscal 1999 and $1.19 in fiscal 2000, a growth rate of 32.96 percent. Over the past five quarters, the firm has beaten the consensus estimate by an average of 7 percent. The company's net profit margin of 34.78 is more than double the industry, sector and S&P averages. Brokerage houses currently recommend the stock with twelve "strong buys", five "moderate buys" and one "hold". Over the past 52 weeks, the share price has traded in the following range: $11 7/16 to $112 3/8. Should you decide to invest, use a stop-loss of $96. (09/20/1999) |
