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Technology Stocks : Micro Linear (MLIN)? -- Ignore unavailable to you. Want to Upgrade?

To: Bernard Levy who wrote (1281)	10/22/1997 1:07:00 PM
From: chuckn	Respond to of 1675

I, am also out today at 8 5/8. I got out at the last runup, as my target was $15, when growth was steady and on track. I got back in again at an avg cost of just over $10. However, when this stock did it's big second dip, the street knew something was up and we now know that it was becoming apparent that their ethernet position was weakening due to competitive forces. Unfortunately, I didn't have that insight. At any rate, with declining revenues and declining margins, I don't see any quick fixes here. The P/E based on forward earings is probably more like 35! Assuming a price of $8 1/2 and earnings of $.24.... That's my estimate. This last earnings report is very disappointing. However, I do believe that MLIN will start to see some "turns" business. They have always had ticks up and down based on customer ordering patterns. But I think an optimistic view would have them pick up a few million in turns to keep Q4 flat with Q3 (based on Q3 bookings dropping by another nearly 3 million as compared to Q3 billings). I just don't see any growth ahead for a few quarters. There is never info regarding this company released between earnings releases. So unless the street sees something else happening, I would expect this to slowly slip back to year ago lows. onward, chuck

To: Bernard Levy who wrote (1281)	10/22/1997 3:48:00 PM
From: slob	Read Replies (2) \| Respond to of 1675

Bernard, Thanks for your input. I'm also looking at LSI and IDTI but I'm already overexposed in the Semi area so I would have to sell one of my semi stocks before I could buy another. I don't like what I'm seeing in the PC based companies, it seems like R&D costs are flying out of control at the same time as margins are shrinking, not good news. S3 and CRUS results were very concerning. I still like what I see at CLTK, however their results seem to reflect stronger defense based sales. Overall I'm corcerned that we might be looking at another mid 95 semi retreat. One semi that looks interesting is an ADR called Macronix(MXICY), based in Tiawan, they are doing a great job taking market share away from DSPG in the telephone answering machine area, a good fab to. I like them at under 15. Slob