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

To: Stu Bishop who wrote (718)	12/6/1998 2:56:00 PM
From: Jeff Bond	Read Replies (1) \| Respond to of 1225

Stu, In calculating growth looking forward, I believe SMTC was overly cautious in doing so. I recall that they were anticipating almost no growth in ATE, and were not accounting for many potentially lucrative design wins that appear to be firming up. Also, there is the little issue of rising gross and net margins to consider. Both of these bode well for earnings increasing over the next 4 quarters. The company has not really made public everything they must be working on, and rightly so for competitive reasons. I believe there are some things that will surface that we have not been made aware of yet. Also, Acapella will at some point begin contributing towards the company in larger fashion, although that may be more than a year away. In light of this combination of factors that affect what PE investors and institutions are willing to pay, the potential to grow gross and net margins, and the potential for positive growth suprises, I can get comfortable with holding this one for another 2-3 years now. Indeed, it may settle a little ... then again it may not. What my point was is simply that a lot of the hard times are already behind now, so from my point of view it's time to sit back, remain patient, and enjoy the ride. If there are other places an investor can make a better return with a low associated risk, they may be better served to sell at this point. But, in light of general market conditions, the upbeat atmosphere surrounding SMTC, and a potential explosion for demand in power management products, remaining long is not a bad way to go either. I'm happy :o) Regards, JB