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Technology Stocks : PMC-Sierra (PMCS) - moderated -- Ignore unavailable to you. Want to Upgrade?

To: BUYandHOLD who wrote (172)	12/11/2000 10:57:28 AM
From: Howard R. Hansen	Respond to of 469

1. PMCS has made approx 105 mill Net in the last 10 yrs 2. Of the 105 mill a full 90 mill was made in last one year!! 3. That mean approx 1.4 mill ave over the prev 9 yrs. Now that doesn't look like a reliable co. Any comments? In one sense there is nothing unusual about most of PMCS earnings coming in the last year. PMCS is a young fast growing company in a fast growing industry. In another sense this is abnormal as very few companies grow earnings this fast. P.S Notice I am a "value" person with a bias towards predictability of earnings... PMCS is definitely not the type of stock you would normally find on a value investors buy list. Its P/E is to high. Rather it is the type of stock you would find near the top of a growth investor buy list. Earnings have been growing at a rate of 24.5% over the last 5 years. However, because PMCS earnings have been growing so fast they certainly don't meet your reliability criterion. Conclusion don't buy PMCS if you want to buy value stocks. However, if you are looking to include one or two high growth stocks in your portfolio than PMCS is worthy of consideration.