Stu,
SMTC makes FRONT PAGE in Tuesday, August 22, 2000 issue of Investor's Business Daily. Article very upbeat, discusses entry into communications sector, acquisitions (including USAR which was accepted in Bluetooth special interest group), and retention of top rate engineers.
This was a GREAT write up for SMTC, congrats to platinum management, and the best analog engineers in the business, hats off fellas :o)
Stu, with respect to your question, I would look at it like this.
1. Compare the companies in terms of how many engineers they have acquired, and more importantly see how many they have retained. This is the meat of the company, and it will directly relate to how many new products are in the pipeline.
2. Compare the companies in terms of number of new product familes released, and new design wins. Most importantly put these numbers in perspective by calculating the growth of each as a percentage for the companies individually. The company that as a percentage is releasing the most new product familes, and securing the most new design wins is most likely going to be the best performer.
3. Analyze the management in terms of their ability to make tough business decisions, retain key employees, and provide outstanding vision going forward. You know my opinion in this regard, I do not know of a better management team for an analog semiconductor company than Jack Poe, David Franz, John Baumann, and their team. PERIOD!
4. Look into the future, and imagine what potential each company might yield in terms of firm products, as well as potential markets. SMTC has communications, power management, and I think the market that is not being addressed that is substantial is the as yet silent benefits of the USAR acquisition. BIG move in acquiring this company, and as Bluetooth and other wireless technologies come into the mainstream, SMTC will be a part of this market.
You know the deal, I think we bought our first shares of SMTC the same week, if I remember right :o)
There is no best answer, but diversifying in the same industry group does not sound like it will accomplish much. Take some of your profits off the table, and move them into a different industry group or cash, if you think growth might slow down, otherwise just sit tight and let your long-term gains grow under a lower tax rate.
Frankly, it would not surprise me to see the stock take a breather. With a PE of 100, it might make a little sense for the stock to experience some consolidation. I think Yogi may be right in this regard. But, it would most likely be temporary, and long-term there is NO better choice in this industry group than SMTC.
Just the thoughts of a SMTC newbie, take it easy, hope you've been well ... along with the other members of this incredible thread (Leeza, Tim, John, pham, etc.)
pham, no need to worry about technicals, just keep designing chips baby, and the stock will work itself out just fine :o) ... congratulations to you and the rest of the engineers!
Regards, JB
P.S. I just wish to reiterate my opinion the acquisition of USAR was a very smart move on the part of SMTC, both in terms of engineering/technology obtained, and the prospects for future growth ... conclusion? PLATINUM MANAGEMENT! |
