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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: Glen2 who wrote (4676)	10/19/1999 4:13:00 PM
From: Minbari	Read Replies (1) \| Respond to of 6180

...and what was the basis for the downgrade? TXN doesn't make Dram chips anymore.

To: Glen2 who wrote (4676)	10/19/1999 5:44:00 PM
From: George Schulte	Read Replies (2) \| Respond to of 6180

Glen 2 I can not understand these analyst less than 2 weeks ago all of them had strong buys on TXN and INTC and now they are running for the exits I dont see much changes in either of these companies since the glowing forcasts were made by the so called experts If these are the type of people that are managing our $$$$$$$ in mutual funds I am glad I do my own trading George Schulte

To: Glen2 who wrote (4676)	10/19/1999 6:42:00 PM
From: Smart Investor	Read Replies (1) \| Respond to of 6180

Who is this idiot downgrading a stock when it reported great earning and has very positive comments about future quarters? He probably can not tell the difference between a good earning report and a bad earning report. I guess that he is not too far from being fired. That probably will happen when TXN turns around in the next few days and get back to the 90s.

To: Glen2 who wrote (4676)	10/20/1999 12:31:00 AM
From: Mephisto	Read Replies (1) \| Respond to of 6180

Texas Instruments Rocking the Digital Chip World By Richard McCaffery (TMF Gibson) October 19, 1999 Chances are good that when you buy a digital telephone, Texas Instruments (NYSE: TXN) chips are inside. As a result, the semiconductor and electronics manufacturer reported strong results for the third quarter. Earnings grew 143% to $0.51 per diluted share (excluding special charges), soundly beating analyst estimates. Revenue grew 13% to $2.4 billion from $2.1 billion last year. Excluding the company's divested memory chip business, which it sold last year to Micron Technology (NYSE: MU), revenue increased 25%. On top of that, the Dallas-based company boosted gross margins an amazing 10 percentage points (excluding special charges) to 48.2%, and operating margins 10.3 percentage points to 19.9%. Not only are sales and income increasing, but the company is more efficient after spinning off non-core and commodity lines of business. Texas Instruments' stock has climbed for much of the last two years thanks to a corporate refocusing and restructuring. Since 1997 the company has made more than 25 acquisitions and divestitures. It's now the world's leading supplier of DSP and analog semiconductor chips. This fast-growing market is driven by sales of communications and computer equipment, products like digital cameras, modems, and computer networking gear. The DSP market shows no signs of slowing. Texas Instruments expects it to triple in size from 1998 to 2002. Investors are reaping the rewards. Over the last 12 months the stock price (adjusted for a split in August) shot from $29 to $94 1/8, a tidy 224%increase. This morning's financial release gives investors no reason to think the company will stray from its profitable course, or that customers will suddenly stop buying DSP and analog chips, though oversupply in this industry is an issue. DSP revenue grew 25% and analog revenue grew 24% over the same period in 1998 -- and Q3 1998 DSP growth was robust. It's unclear how much DSP revenue grew sequentially, but analog catalog revenue grew 19% in thesecond quarter as a result of strategic investments. One item to stay on top of, however, is growth in accounts receivables, which increased 51% over levels at the end of last year. This item represents products shipped that the company has yet to be paid for, and, ideally, you'd like to see it growing at the same rate or slower than sales. Yet receivables grew more than twice as fast as total revenue over that time. It's difficult to make an apples-to-apples comparison between receivables, DSP, and analog chip sales in that nine-month period. The company doesn't break out DSP and analog revenue, just percentages, so it's possible receivables are just pacing sales of these fast-growing items. Nevertheless, the company said receivables growth is due to a disproportionate level of shipments going out at the end of the quarter, an imbalance that should soon be naturally corrected. It's something for investors to keep an eye on while taking a closer look.