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Technology Stocks : Semtech (Nasdaq:SMTC) -- Ignore unavailable to you. Want to Upgrade?

To: Stu Bishop who wrote (1104)	6/18/2000 4:38:00 PM
From: Kelvin Taylor	Respond to of 1225

Stu- This is what I think was the deal with SMTC on Friday. Semtech Corp. (Nasdaq: SMTC - news) will replace Charter One Financial in the S&P MidCap 400 Index. Mutual fund managers have to buy the stock to duplicate the index. Is anything else up? Can't say for sure, but if not then I fully expect the stock to give back a good portion of that gain in the days to come. Most of the buying happen in last 30 minutes of trading. A 24% daily gain is a bit much for the stock to hold on to. Kelvin

To: Stu Bishop who wrote (1104)	6/25/2000 2:29:00 PM
From: Leeza Rodriguez	Read Replies (3) \| Respond to of 1225

Stu, Jeff, SMTC longs: Been away for ~2 weeks and thrilled to see the two recent developments. #1) addition to S&P Mid Cap Index = g r e a t! This opens the doors for a LOT of money flow into SMTC simply because many mid cap mutual funds model themselves after the index. It also gives the company additionally levels of credibility and clout. #2) Burr Brown acquisition for $7.6Billion= w o w ! BurrBrown has trailing 12M of revenues of $320MM, so this means they are getting taken out at a trailing PSR= 24. Twenty four! Consider that SMTC currently trades at a trailing PSR= 12 and has HIGHER margins than Burr Brown. Yep, you heard that right-- last quarter SMTC operating margins were 28%, while Burr Brown margins are 26%. So----since they are in the same space, with even better margins, it is absolutely NOT outrageous to think about the valuation at this multiple. Here we come $148 ? Whoa. leeza rodriguez