Synopsys (SNPS) Steady long term growth 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 : Synopsys (SNPS) Steady long term growth

SNPS 445.61

-1.8%

9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: JakeStraw	10/29/2008 2:15:59 PM
	of 227

."Synopsys (SNPS) has won over Paul Wick, managing partner of J&W Seligman and head of Seligman Technology Group. "This is one of the most disruptive tech markets I've ever seen," says Wick, who pioneered tech mutual funds. But the disruption can produce opportunities like Synopsys, whose share price has fallen from 28 to 16. It makes software used to design electronic items like semiconductors. For all the fear about consumers, Wick doesn't believe the end buyer of Synopsys' clients' goods is in too bad shape. Adds Wick, "This is the ultimate defensive stock to the consumer electronics and computer industry." About 90% of Synopsys' revenue comes from a "visible" backlog of orders, which alleviates some pressure on 2008 sales. He believes Synopsys' earnings will grow 10% to 20% a year over the next three to five years as profit margins swell to 25% in 2009 from 23.5% this year. He thinks the Street's consensus earnings-per-share estimate of $1.67 is too low; he looks for $1.90 a share. The stock, says Wick, has the potential to hit 21. And with $6 a share in cash, he doesn't understand why more value investors haven't hopped on board yet." online.barrons.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next