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Technology Stocks : Dallas Semiconductor: Time to Buy -- Ignore unavailable to you. Want to Upgrade?

To: Charles R who wrote (136)	10/16/1999 1:14:00 AM
From: Ron Jackson	Read Replies (1) \| Respond to of 160

Chuck, <This is definitely not my definition of strength.> I agree that it isn't the sole criterion of strength and has the potential for weakness if not controlled. <I believe diversification is what is holding them down.> The real underlying issue with DS is the reason they have product diversity. This is a conservative company. They make conservative decisions. They're engineers. They make top quality innovative products. They deliver. They are well respected. Their product strategy seems to be akin to having a diversified portfolio. They're not the type of management to "bet the fab" on one market segment. They do the "responsible" thing. Steady growth to build shareholder value. I have seen specific market segment downturns that would have hurt them badly had they not been diversified. Agree with it or not, they aren't going to change... because: "Our strategy of diversity in products, customers and markets has served us well through the Company's 15-year history." - DS annual report 1998. I've never lost money on DS. So, I can't complain. But... as a stockholder I sometimes think they are TOO conservative. And, sometimes I'm just happy they are conservative - like today. <Yes, lack of focus.> It seems their focus is on high margin innovative quality products across diverse market segments. I believe they have focus within each particular market segment. I have seen this first hand as a customer. They have people engineering and marketing to those specific segments. And, these are growth markets. I agree this is a potential problem if there is infighting for engineering, or manufacturing, or marketing resources and bad decisions are being made for political reasons. However, I have no reason to suspect this based on what I've observed. If anything perhaps we could argue the company is more product focused than marketing driven. <What does DS want to be when they grow up? Strong companies need a strong vision that the company can rally around. What DS has right now is mush. They are doing well because of good execution.> Yes, they have done an excellent job of executing their plan. And, could they do some things better if they weren't as diversified? Yeah probably. But, I contend the company would be more vulnerable to bad decisions and the semi industry fluctuations. Yes, it does resemble mush. But, is this merely our perception because they've done an equally good job in several markets? I'm glad they're actively pursuing diverse growth markets with their R&D dollars. It gives them a better chance to pounce on markets such as communications when they turn hot. Should we start arguing with ourselves under different names to liven this up around here? Ron