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Technology Stocks : Texas Instruments - Good buy now or should we wait?
TXN 177.07-1.0%3:59 PM EST

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To: robert w fain who wrote (1564)10/3/1997 11:09:00 AM
From: Bilow   of 6180
 
Hello all. Just bought some puts on this stock. My analysis:
10 x Book
2.5 x Sales
33 x Earnings
16-year average yearly sales growth rate/share: 3%

Not a growth stock: Growth essentially ended in Carter era.
Not a value stock: PE 11 times growth rate. Only 10 cents of
assets per dollar.
Too big to be a story stock: No matter how lucky they get, it
won't make much of a dint on their already huge sales.

In addition, DSPs are their big market chunk, and that field is
coming under increasing pressure from the last few years
programmable logic devices from Altera and Xilinx. In particular,
those two companies targetted the DSP market. And their
products give incredible price/performance on DSP algorithms.

-- Carl
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