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Technology Stocks : Semtech (Nasdaq:SMTC) -- Ignore unavailable to you. Want to Upgrade?

To: John F. Poteraske who wrote (704)	11/30/1998 1:30:00 AM
From: Jeff Bond	Read Replies (2) \| Respond to of 1225

I appreciate that line of thought. Is there reason to conclude that SMTC will not be able to reach it's historical P/E of 42 before it decides to correct, or for that matter to maintain it's current P/E around 35? It also seems very unlikely that the consensus earnings estimate of $1.00 will remain in place much longer. There is good reason to suspect it could become $1.20 without too much effort. In the conference call, earnings growth was anticipated by the company to be +5-8% for two quarters and +2-4% for two quarters. This easily would yield annual earnings of $1.20, and it was pretty clear the company was being conservative looking forward. I suspect something like this is pretty reasonable, but then again who ever said reason enters into the equation. P/E = 35 earnings = $1.25 stock price = $43.75 I think this is reasonable fairly soon if earnings estimates are revised. It would serve the interests of institutions at this point as well, since they already have their shares. Just a thought, I DO listen to you, since I remember all too well the conversation we had last year about this very subject on this exact same company. Thanks JP :o) nice move on BAMM, I got POWI at $9 5/8 in September, still long ... Regards, JB