>>Yes, I am impressed with Xilinx. They had a poor 1996 - but that is the past.<<
true enough. the markets look forward. having said that, though, there is a question that begs to be answered. if xlnx's products are so hot why are margins dropping so much? competition, perhaps? competition that will only get worse?
now, i'm not saying that xlnx doesn't have fantastic products. i understand they do. i'm not even saying they don't deserve a rich multiple.
i am saying that the company is incredibly touty - highlighting their expectations of 30% growth (which is positive but not fact) while ignoring the facts of margins being down, revenues being flat and eps being down (negative, but facts nonetheless).
i also thought it was creative to highlight q to q growth (supposedly positive) while ignoring the y to y eps decline (negative). both should be addressed, but the negative is ignored so that those who buy with their eyes closed (i still can't believe this one) have an easier time doing it.
"Ad captandum vulgus," which means, "To appeal to the crowd," appears to be xlnx's ir philosophy - very scary, imho...
eps were up so much q to q because the previous q sucked wind - not because the last q was great. it wasnt even as good as last year!
xlnx may do well in the future - they better because their is no room for any disappointment in the current stock price. jmho...
one surprise (or even the status quo!) and the bulls will open their eyes and see nothing left... again, jmho.
good luck... |
