The analyst only cut Burr Brown's Q2 earning by $0.01 out of $0.28, and the stock dropped 20% or so! Worst of all, it also affected both Linear Technologies and Maxim, although to a lesser degree!
BBRC is a very good company. LLTC and MXIM are even better, at making money.
Burr Brown, Linear Technology, Maxim, Unitrode, and IMP (what have I missed?) are all competing in the high-end analogy IC market. Among them, LLTC has the highest profit margin (70% gross) and also the biggest, with MXIM very close behind. In terms of growth, BBRC is not that spectacular compared to LLTC. So when BBRC has a little problem, that is not fair to drag others into the mud as well.
This is an excellent buying opportunity for LLTC, and perhaps MXIM.
Regards,
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