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Technology Stocks : SILI - Siliconix -- Ignore unavailable to you. Want to Upgrade?

To: G.M. Flinn who wrote (43)	2/24/2000 10:48:00 AM
From: WTMHouston	Read Replies (1) \| Respond to of 152

Try this comparison to VTSS. I was just doing some looking at VTSS based on the analyst upgrade today, which set a new price target of $135, which is over 140x FY2001 earnings. VTSS has lower revenues than SILI and lower earnings than SILI, but it has over 157,000,000 outstanding shares, has 19 analysts following it, and has a market cap of over six times SILI ($12 billion+). The important comparison is that the forward earnings estimates reflect 10% sequential quarterly growth in earnings: which is the low end of what many expect for SILI over the next two years. Based on this kind of earnings growth, 10% sequential quarterly growth, analysts have justified PE multiples of over 100 on FY2001 earnings for VTSS, which would put SILI well over $1500 per share. Here is the math: FY2000 estimate: $12.50 (10% sequential quarterly); FY 2001 estimate: $18.27 x 100 = $1827. Even at a PE of $50, SILI should be above $900 per share. If we expand it to the 140 given to VTSS, we get over $2500. With SILI currently trading at $260 or so, it looks like an absolute steal. The main thing that SILI lacks that VTSS has is a big float and analyst coverage: i. e., exposure. Split the stock 10 for 1 and SILI could be up another 500% to 700%, at least, in six to twelve months. SILI is SERIOUSLY UNDERVALUED...... Troy