Or is it that investors just don't get it?
They "get it", but aren't ready to buy it, at least not big. Conflicting industry signals + plenty of real world distractions = a huge buyer's strike. ADI's marking time here.
When the floodgates open and untold hoards of cash move into equities a lot of it will undoubtedly find its way into ADI. I agree with Peck, when it goes it will go higher than most of the rest.
I tell you, Scrapps, I'm still pumped over their last q results and, moreso, with their guidance for 2001 (especially with others succumbing to inventory issues). ADI's stars are so perfectly aligned it boggles the mind. They have the right products in so many market segments, geographies, and hot product categories that to say "they're on a roll" is an understatement.
Think about it, by this time next year they will have grown revenues from $1.4b to probably over $4b in just eight quarters! No other company starting with a base that large can touch those kind of growth figures. And to cap it off, they're taking market share and increasing margins at the same time. This is a great story and it's fun to be following it as it unfolds.
It terms of the market, all it needs is time. Time to heal itself. I think to a large extent it's still recovering from those market lottery days between last November and March when everyone held a winning ticket no matter what number they played. Hopefully, when sanity breaks out again, the market will distinguish between real winners and losers and price them accordingly.
BV |
