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Technology Stocks : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (657)	8/29/2000 1:50:10 PM
From: William F. Wager, Jr.	Respond to of 1805

Applied Micro Reiterated 'Strong Buy' at Banc of America 8/28/00 11:15:00 AM Source: Bloomberg News Princeton, New Jersey, Aug. 28 (Bloomberg Data) -- Applied Micro Circuits Corp. (AMCC US) was reiterated ''strong buy'' by analyst Alex Gauna at Banc of America Securities. The 12-month target price is $320.00 per share.

To: SJS who wrote (657)	8/30/2000 8:10:05 PM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 1805

A little trivia + excerpt from a Barron's interview 8/29... 52 week low on 8/31/99 of 22.6406 52 week high on 8/30/00 of 200.50 <what a year to the day!> *********************************************************** Q: How about one more stock pick? Price: Applied Micro Circuits (AMCC) is our third-largest position. Chen: We regard it as the most reasonably valued communications semiconductor company that also has extremely high growth. Q: What kind of a P/E does the market give it? Chen: It is trading at [around 180] a share, and we are estimating them earning $1.26 a share next year. So it is about 140 times earnings. Q: Versus what kind of a growth rate? Chen: In the June quarter, it [earned] $74 million, and [in the] year-ago quarter they did $31 million. And that compared with $57 million in the March quarter. So, you can see that it is also extraordinary growth rate. Price: We think the secular growth rate is 70% a year for the next three years. Chen: Right now they are growing a lot faster than that. Q: So, that big premium is justified in your opinion? Chen: When we are looking at high-growth companies, we do these modifications. We put our own [earnings] on it, and we put our own growth rates on it. And in these very strong companies that we have gotten to know well, we think our higher-than-consensus estimate is highly probable and therefore the valuation is actually not as high as it first appears. Favorite Stocks Company Ticker Price SDL SDLI 399 3/4 Checkpoint Software CHKP 137 5/16 Applied Micro Circuits AMCC 184 7/8 Q: First Call has the secular growth rate at 40%. You obviously think that is too conservative? Chen: Considering that they just did 134% in the latest quarter, I think we are going to be closer to right than First Call is. Price: And importantly, they provide the chips that are the interface to the real world and the optical world. And those interface chips and those interface systems are going to grow very, very rapidly. That's what's behind the high growth rate of the company. --Bill