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

To: STOCKaHOLIC who wrote (1287)	10/23/1997 12:42:00 PM
From: Bernard Levy	Read Replies (1) \| Respond to of 1675

QUAL, which is one of the companies which cut into MLIN's fast Ethernet business, reported its results yesterday. Its revenue growth was good ($20M instead of $16M the previous quarter), but its margins were very poor (profits before writeoff = 0.06$/sh). As a consequence, it is getting massacred today. Interestingly, it was just downgraded by Needham and Volpe Brown. QUAL cited intense price competition in the networking chips market. Why would Needham reiterate a buy for MLIN on Monday, and downgrade QUAL , whose results were a little bit better (but not very good)? The Needham analyst must see something that others have not picked up yet. For those on this thread who are still long MLIN, it would really be worthwile to do whatever it takes to get a copy of the Needham analyst's repport. On the other hand, LEVL reported its results on Tuesday, which were great as expected. Elias Moosa, the Robertson Stephens analyst, upgraded it. Clearly Mr. Moosa loves LEVL and hates MLIN (and MLIN's management has obviously little affection for him). But LEVL has a P/E > 40, so that all the good news are already fully priced in the stock.