Jim,
Buy ADI below $50? Is that post-split?! :-)
Seriously, thanks for the link. Looks like I.I. has a bad case of "value-itis" - the article recommends buying Mercury Computer Systems, basically, because it was beaten down after slower than expected year 2001 rev growth, and now is supposedly at a discount. I am unfamiliar with Mercury, but the article read "as of the end of March, Mercury generated as much as 70% of its revenues from sales to the military market." and the rest came primarily from embedded systems for medical imaging. Companies heavy into government sales typically struggle with commercial business. And the "AgileVision" JV, "whose goal is to develop studio equipment for TV broadcasters," sounds like a niche product to me with possibly a long sales cycle. If anyone disagrees, please post, but meantime I say, Thanks but no thanks.
So, in a nutshell, they recommend a company with notably less growth opportunity (military and healthcare markets) than ADI (and DSP and TXN) tornado-like prospects in DSL, cell phones, digital cameras, etc.! What are these guys smokin'?! |
