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Technology Stocks : Microsemi (MSCC) Strong Earnings & BTB -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (1437)	1/13/2004 11:07:07 AM
From: Gus	Read Replies (1) \| Respond to of 1445

I think MSCC is fully capable of narrowing its PSR gap with SMTC if it can start trending its key metrics upwards during the next 36 months. As you can see from the results of LLTC, MXIM, and SMTC -- which survived the loss of a major contract to Dell a few years ago -- well-managed analog companies have unusually powerful operating leverage that kicks in even with average or below average sales growth. MSCC may no longer be the screaming bargain it was in early 2000 when it was just completing its restructuring, but it is also just starting a genuine period of growth with the economic tailwind finally in its favor. MSCC SMTC LLTC MXIM PSR as of 1/12 4.1 10.6 22.0 15.6 Gross Margin* 35% 62% 82% 75% Net Margin* 2% 11% 40% 28% CFFO/Sales* 8% 33% 47% 50% *Most Recent Fiscal Year