Third, LLTC, MXIM, ALTR, and XLNX are unusual in that their product is sold into all technology markets.
I have been trying to make a case to myself to buy these and I can not unless there is a customer who will be a huge growth driver. Don't get me wrong, I'd work for any of them, but their high price/sales scares me. Have you driven buy the "Cisco Musoleum" where they have several empty buildings? South San Jose's Coyote Valley was to be even more Cisco employees. The fact is Cisco just is not selling enough routers to put all these custom chips into nor to fill these empty buildings... at least not right now.
Something tells me the large profit margins that allow your 4 favorites, LLTC, MXIM, ALTR, and XLNX, to hold up so well will come under attack and they will not find growth so easily.
But if they went on sale for 50% less....
I could be wrong, but the valuations are rich....
Kirk |
