Semi Equipment Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis

SOXX 313.69

+4.2%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Proud_Infidel who wrote (11035)	8/17/2003 9:18:59 PM
From: Cary Salsberg	Read Replies (1) of 95663

Hi Brian, Price/sales ratios are not useful for LLTC and MXIM. Since they always have earnings, PE is more meaningful. LLTC revenues went from $280M to $120M in two quarters, recently. Profit margin fell from 43% to 38%. You can see the effect on their price. I think a misstep will be just that, a temporary problem, and I will hold. I am diversified across 8 companies, so I have some protection from company specific problems. I think LLTC and MXIM growth rates will exceed 20%. A 1.5 PEG, gives a PE of >30. Last quarter they did $0.21. If you use the current consensus forecast, $0.91, you get $27.30. If you use 25% growth and a PE of 37.5, you get $34.13. I bought from $37.5 to $27.5 and the October 2002 low was ~$18. Cary

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next