The Wall St. lemmings are doing the normal panic. This is getting old, but not unexpected. Lets take a look at a few numbers which show how silly things are getting. Even though I use the below numbers, I am fully aware that these are all subject to change. Also, these numbers do not reflect how well the companies have done in the past.
For example, RFMD has missed earnings estimates recently due to packaging problems that were more or less out of their control. VTSS hasn't missed a beat in a few years. Yet both companies trade within a dollar of each other. Funny that RFMD(fwd pe of 43) will only earn $.39 this fiscal year and VTSS(fwd pe of 22) is expected to earn $.66. Both are growing at similar rates long term rates,yet the analysts give VTSS the greater 5 year growth rate 40% to RFMD's 30%.
Broadcom, growing at a 50% rate, is given a 115 forward PE. VTSS, growing at a 40% rate, is given a 22 forward PE. wow! What's even more significant, IMO, is that 8 analysts cover VTSS long term and only 3 cover BRCM!!
BRCM (the most over valued of this group, IMO):
FY98 earns .65 FY99 earns .85 FWD PE 115 PEG=2.38
RFMD
FY99 earns .39 FY00 earns .66 FWD PE 43 PEG=1.74
PMCS
FY98 earns 1.16 FY99 earns 1.35 FWD PE 26 PEG=.75
VTSS
FY98 earns .66 FY99 earns .83 FWD PE=22 PEG=.87
AMCC
FY99 earns .72 FY00 earns .90 FWD PE=20 PEG=.66 |
