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Strategies & Market Trends : Quarter to Quarter Aggressive Growth Stocks

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To: C. McD who wrote (702)9/11/2000 3:22:34 PM
From: Jack Hartmann  Read Replies (1) of 6927
 
Downside could be down to ~$35 if things go really bad, upside to $100 by the end of the year if SLAB stays on
track. Could be very risky w/ a PE ~165 and selling only one product, especially if insider trading is heavy and telecom/semi market doesn't recover.


C. McD, If SLAB goes down to $35, the Nasdaq will be hurting too. The one product doesn't bother me nor does the present P/E. The one proiduct issue seems to be a risk, but if it saves million on testing as claimed, I see it being attractive to get bought out too. Some of the run-up was in sympathy to ADI's upside pre-announcement and the small float creates abnornal volatility. The 20% sequential growth rate in the last quarter means the product is selling. Since revenue and earnings growth is strong, the PE will see some compression in a bad market and go higher in a good one.

I like SLAB, but will wait for a firmer bottom to form. Hopefully it will be at $50. I would like to see the volume dry up and the price stabilize for three or four days.

Past DD on SLAB at Message 14245631

Jack
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