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Strategies & Market Trends : Don't Drink the Kool-Aid Kids

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To: Alan Smithee who wrote (749)8/1/2001 12:14:22 PM
From: Stoctrash   of 1063
 
"Texas Instruments (TXN), the leading U.S. semiconductor supplier to the cell phone industry, announced that it would idle two factories in Texas for three weeks this month. A distributor contact told me that they're also considering a similar shutdown in December. TXN's chief operating officer recently admitted that there had been no improvement in business conditions in the second quarter. . . . It makes you wonder how investors can justify paying 100 times estimated 2001 earnings for TXN. On a price/sales basis, TXN (at a $57 billion market valuation) sells at 6.5 times 2001 estimated sales and nearly six times 2002 estimated sales. For comparison purposes, TXN's price/sales ratio in 1998 was 2.5 times, in 1995 it was 0.8 times and in 1991 it was 0.45 times sales."
Message 16139071

Similar to my INTC "trashy" view.
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