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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (1852)	7/6/1998 2:35:00 AM
From: tech101	Read Replies (1) \| Respond to of 3818

Q&A in BARRON's By HOWARD R. GOLD An Interview with Kevin M. Landis. June 30, 1998 ..... Q: The next big one of your core holdings is PMC-Sierra. Why don't you tell me a little bit about them. What do they do? A: Have you heard of the term ATM? Q: Oh sure. Asynchronous Transfer Mode. Why don't you explain what that is? A: Asynchronous Transfer Mode is the architecture of choice in the wide area network. So, if you send me an e-mail, chances are it will become an ATM packet sent over an ATM network. Q: Packet switching. A: Yes. PMC is the leading ATM chip company; it accounts for about half their sales. The other half comes from similar products -- high-performance communications chips. Their customer list reads like the Who's Who of Internet hardware companies: Nortel, Siemens, Lucent, Bay Networks, Ascend. Q: So, these are one of the "enablers" we discussed before. A: This is my Internet stock masquerading as a chip company. Q: Unlike Avant!, this stock really seems to have climbed nicely early in the year. It peaked close to 50 and then went down a bit to the high 30s. Now it is bouncing back up to where it was. So it is around its 52-week high. A: You recall earlier in the discussion, we said, do you know a company that you just can't see it missing its number. You know its story is bulletproof. Then you are going to add to that position. We added to PMC recently when it went back to the low 40s. The stock is 50 now. Q: That looks like a good move. Earnings growth going into next year is about 18% projected. I have it trading at about 36 times next year's earnings. Is that right? A: They made 29 cents last quarter. I think, real quick back-of-the-envelope numbers, I think we can see that going to 37-38 cents by the fourth quarter. Q: Would you buy some more at these prices? A: This is not the investor in me talking; this is just for the amateur trader in me talking. Don't be surprised if there is an extra penny or two in the number. Don't be surprised if it is really an upbeat [conference] call. Don't be surprised if it is a $55, even a $60 stock at the end of July. .......