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Technology Stocks : Texas Instruments - Good buy now or should we wait?
TXN 168.27+1.8%Nov 28 9:30 AM EST

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To: Fred Levine who wrote (5994)6/12/2004 12:45:34 AM
From: Bilow  Read Replies (1) of 6180
 
Hi Fred Levine; Re: "his stock is very frustrating to me. The news has been good, the market growing, new products, earnings on the upper end. Yet, for a reason that I don't know, the stock has been floundering. Anyone know something I don't?"

TXN is not a growth stock and hasn't been since before Reagan was elected President. My comments on it back in 1997 are still appropriate, though the multiples have come down since then: #reply-2347507

Go ahead, shock yourself. Make a chart of TXN's sales per share over the last 30 years. Now total revenues have increased, but that's mostly due to TXN buying companies, not from growth of their own business.

The company made a big deal out of how fast their DSP business was growing ten years ago. A lot of investors piled on to the stock, but the hype was mostly about selling stock and making management wealthy. Maybe some of the long term buyers didn't realize that an electronics company has to grow their latest technology at gang buster rates just to keep their head barely above water.

-- Carl
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