Texas Instruments - Good buy now or should we wait? 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 : Texas Instruments - Good buy now or should we wait?

TXN 159.33

-1.8%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Charlie Smith who wrote (2558)	12/17/1997 10:32:00 PM
From: Larry Brew	Read Replies (2) of 6180

Charlie, Robert, << TI earnings >> I did some quick research since we're on a roll. Periodically I log earning estimates, P/E's, P/s's, growth and numereous other indicators on about 25 stocks, TI included. I try to update monthly or so. Looking at my Oct.4th evaluation, TI 1998 expected earnings was $5.76/share. Today it's at $2.76/share for 1998. With the stock now at about $44/share and split the 5.76 becomes $2.88/share. Only a .12 decrease, but today's tech sector expects better than forcasted earnings due to past performance. Current 1997 earnings are projected to be 2.08 with 4th qtr at .60. At 1997 earnings and a healthy PE of 20, that makes TI a 41.6 dollar stock. Almost all tech sectors, including semis, have given disappointing earnings. This alone will drive multiples to a more normal valuation of 17 times earnings. This puts TI at 35.36 for 1997 earnings and 48.96 for 1998. Remember, sentiment rules and today it's negitive for technology. Personally I believe the slowdown is due to transition in the industry. Some upside should occur in Jan/Feb due solely to added 401k money to the market. Fear not if your a long term investor. No charge for this service! Larry

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next