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Technology Stocks : Semtech -- Ignore unavailable to you. Want to Upgrade?

To: pham who wrote (700)	1/15/1998 11:31:00 PM
From: Todd D. Wiener	Respond to of 886

CBOE to list options on Semtech Corp Reuters Story - January 15, 1998 22:12 CHICAGO, Jan 15 (Reuters) - The Chicago Board Options Exchange said it would list options on shares of Semtech Corp beginning January 21. Semtech options will trade on the March expiration cycle, with introductory expirations in February, March, June and September. Initial strike prices are 17-1/2, 20 and 22-1/2. The options will trade in the Wal-Mart trading crowd. Semtech, of Newbury Park, Calif., makes analog integrated circuits and other assembly parts used in computer, communications and industrial applications. What is the Wal-Mart trading crowd? Is that the bunch of people in the trading pit who wear white shirts and red vests?

To: pham who wrote (700)	1/15/1998 11:43:00 PM
From: Todd D. Wiener	Read Replies (1) \| Respond to of 886

Pham- That's a good question. I suppose it might be interpreted as a lack of foresight. But I was shocked by the extent of SMTC's correction. Although I said at the time that SMTC was fairly valued, it was trading at half the valuation of its peers. Also, I knew that SMTC's business was (and is) very strong, and that their acquisition of Edge was an excellent move, and that they would report a great Q3. It wouldn't have suited me to sell at that point, because unless I could buy the stock back at a 30% discount, I would have to pay a lot of that gain in taxes. I don't let tax considerations determine my investment decisions, but the % drop in price has to exceed my tax rate in order for the trade to be worthwhile. Basically, that means that I didn't expect SMTC to drop 50%. I still think that the stock didn't deserve to be cut in half (or at all, really). In retrospect, though, I would have sold if I had known how much the stock was going to drop. But then, I wouldn't be an analyst, I'd be a fortune teller. I'll tell you how to build a fortune. Its by buying stocks like SMTC when they are depressed (and perhaps selling some when they are fairly valued). I see this correction as a tremendous buying opportunity for current and potential SMTC investors. That's why I've since bought more at $25 and at $17. Todd