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

To: Matthew who wrote (1763)	6/16/1998 5:59:00 PM
From: nealm	Respond to of 2389

Matthew, Thanx for the very well written post. I would just like to add that as one who actively embeds PLDs in much larger systems, more than 80 percent of my development costs are tied to engineering labor. I've seen the ASICs and except for very high volume consumer applications it just doesn't make sense. Clearly with higher gate counts I need an approach that the lets me effectively use them with tools that I and my associates understand. From your example, networking products is very good example of time to market. If your a new company like say a Yurie Systems (YURI) and your building an ATM box to get to market first than clearly you are PLD driven. Additionally these products along with others are designed with higher gate densities so there should be continuing need for PLDs with the design tools and lets the design engineer USE the higher gate counts. I see a continuing need for this feature in all applications not just networking. So the bottom line is what are earnings and what is the appropriate P/E? Semis in the past seem to enjoy a P/E/Growth of better 1, but if we straddle a P/E/Growth of 1 and going through the current "inline" numbers ($1.58) the stock should be somewhere in the $38-41. If 1999 numbers hold up than ALTR should be heading to levels even higher. Having said that the market doesn't care what I think and I'd like to see some support. Currently I have no position in ALTR but have done well with them in the past. I might get back in probably somewhere in July. Good luck to those who trade ALTR.. Neal