Semi-Equips - Buy when BLOOD is running in the streets! 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-Equips - Buy when BLOOD is running in the streets!

LRCX 150.33

+5.4%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Cary Salsberg who wrote (3062)	10/27/1997 8:25:00 PM
From: Joel R. Phillips	of 10921

Cary, I have owned and/or followed LLTC and MXIM for some time. Interesting to see you mention them in this context. You mention the "tremendous profit margins." I never cease to be impressed by the financial performance of these companies, LLTC in particular. But I have recently begun to ask myself: are the huge net profit margins Linear enjoys an attraction or a warning sign? Linear is running at 36%+ net (!!) margins. Long term, how much further can they grow those margins? Isn't there more downside than upside here? If a larger competitor can make inroads into the virtual-duopoly market MXIM and LLTC enjoy, and as a result LLTC and MXIM can achieve "only" 15% net on sales, the impact on the stock prices would be catastrophic; LLTC could make an extended sojourn below 20 in such a scenario. What do you think? Maybe we should adjourn to the LLTC thread. --joel

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next