Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (109256)	6/18/2001 9:34:14 PM
From: Don Lloyd	Respond to of 436258

S - I'd like to add LLTC. Basically a fine company but valued like in the peak stage of a growth cycle. next quarter rev will be 20-30% down. In addition, I think there is a good chance that the fat profit margins for analog chips will disppear forever, since digital DSP's will replace them. my short target is 20$. You are correct in that LLTC did predict in April that the current quarter will be sequentially down 20-30% in revenue, but neglect to mention that they also predicted that this would have minimal effect on its 76% gross margin and on its 44% net after tax margin, as the variable costs could and would be readily dialed back. That said, it is entirely possibly that $20 could be reached if the market so rules. Saying that analog has fat profit margins is equivalent to saying that food has fat profit margins, a statement so broad as to be meaningless. Margins are the result of a company deciding what market subset it wants to supply. DSP's will NOT generally replace analog circuits, except for some filter circuit requirements, but actually require more overall. Regards, Don