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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (11035)	8/17/2003 9:18:59 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 95663

Hi Brian, Price/sales ratios are not useful for LLTC and MXIM. Since they always have earnings, PE is more meaningful. LLTC revenues went from $280M to $120M in two quarters, recently. Profit margin fell from 43% to 38%. You can see the effect on their price. I think a misstep will be just that, a temporary problem, and I will hold. I am diversified across 8 companies, so I have some protection from company specific problems. I think LLTC and MXIM growth rates will exceed 20%. A 1.5 PEG, gives a PE of >30. Last quarter they did $0.21. If you use the current consensus forecast, $0.91, you get $27.30. If you use 25% growth and a PE of 37.5, you get $34.13. I bought from $37.5 to $27.5 and the October 2002 low was ~$18. Cary