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To: Sam who wrote (82516)	2/6/2019 1:23:47 PM
From: Sam	2 Recommendations Recommended By Donald Wennerstrom Return to Sender Respond to of 95456

more on Microchip from Marketwatch Microchip’s stock soars after CEO calls a bottom, and he’s been right before By Tomi Kilgore Published: Feb 6, 2019 12:48 p.m. ET CEO Sanghi was right about seeing weakness in housing in July 2007 and about a market bottom in February 2009, analyst says Shares of Microchip Technology Corp. shot up to a six-month high Wednesday, after the semiconductor maker provided a downbeat provided outlook for the current quarter, but Chief Executive Steve Sanghi said he believes that will mark the bottom for the company. And he’s been spot on before. Microchip MCHP, +8.18% reported late Tuesday fiscal third-quarter results that beat expectations, despite a “variety” of headwinds for the chip industry and the global economy, which included trade tensions between the U.S. and China. Given the uncertainty surrounding the trade environment, Sanghi said he continues to be “cautious” about the outlook for the current quarter ending March. And as a result, the company’s guidance range for adjusted earnings per share for the March quarter was $1.26 to $1.53, below the FactSet consensus as of Jan. 31 of $1.54. Sales were projected to be between $1.251 billion and $1.403 billion, compared with the FactSet consensus as of Jan. 31 of $1.39 billion. The stock initially fell after the results were released, as much as 1.5% in after-hours trade Tuesday, before turning sharply higher after the post-earnings conference call began. “Barring any material negative development on the trade front, we see the March 2019 quarter to mark the bottom of the cycle for Microchip,” Sanghi said on the call, according to a transcript provided by FactSet. FactSet, MarketWatch He said whether the recovery is V-shaped, U-shaped or L-shaped will depend somewhat on the outcome of trade talks. Sanghi said that while he expects some progress in trade talks, it’s likely that the March 1 deadline, after which increased tariffs would kick in, will be extended further out. Either way, Sanghi sees “a bottom forming,” and repeated his belief that the current quarter will “mark the bottom” for the company. He reminded analysts on the call that the guidance provided later last year, which reflected caution on business conditions, turned out to be “spot on” and was also a harbinger for broader industry weakness. more text and chart at marketwatch.com