William,<< I like XLNX, LSCC, and ALTR but they seem overpriced considering the flat earnings growth they have been experiencing latley. >>
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Please don't take this as a personal attack, but flat earnings growth is NOT a
correct characterization of at least XLNX and ALTR and probably LSCC as well. Stocks are not valued by looking at their year over year trailing earnings,
but rather by the future expectations for earnings. This is especially true for
the semiconductors, which underwent a massive inventory correction. Comparing the peak earnings of the last up cycle, with a current quarter will always give an overly pessimistic view, if the last set of quarterly sequential results is showing recovery. In comparing ALTR, XLNX and ACTL, compare the latest quarterly sequential REVENUE gains and see if they don't correlate well with the stock prices. I don't know what they actually are, but I think that ACTL showed only 3% sequential revenue growth today, while both of the others are in double digits.
Good Luck, Don |
