CHIP MAKER ROLLS WITH STOCK MARKET.Byline: Dave McNary Daily News Staff Writer Newbury Park-based computer chip specialist Semtech Corp. has seen its stock take a wild ride this year, even by the overheated o·ver·heat v. o·ver·heat·ed, o·ver·heat·ing, o·ver·heats v.tr. 1. To heat too much. 2. To cause to become excited, agitated, or overstimulated. v.intr. standards of the volatile high-tech sector. The company's stock hit an all-time high of $70.50 on Oct. 9, but has since lost 38 percent of its value, including declines of $3.375 on Oct. 20, $8.25 during Oct. 27's market crash and $5.375 during Wednesday's session. Semtech recovered $1 to close at $43.50 on Thursday. Additionally, the stock's value is up 140 percent this year from its first close at $17.25. Analyst C.B. Lee of Sutro & Co., who issued an ``accumulate'' recommendation in late October with a 12-month target price of $60 to $65, said the travails underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the fickle fick·le adj. Characterized by erratic changeableness or instability, especially with regard to affections or attachments; capricious. [Middle English fikel, from Old English ficol, relationship between investors and semiconductor stocks. Such issues have been hammered since early October on concerns that declines in the Asian markets translate into slowing demand for computer products. ``Semtech has been under a lot of pressure and has probably been more damaged than most other tech companies,'' Lee said. ``We've been seeing a lot of profit-taking recently. I'd say Semtech has been more than unjustly punished.'' Morgan Keegan analyst Robert Montague called Semtech a long-term buy in mid-September. Douglas Lee of Nationsbanc Montgomery, who rated it a buy in mid-August, said Thursday the stock should reach $70 and added: ``The sell-off has been obscenely overdone o·ver·done v. Past participle of overdo. Adj. 1. overdone - represented as greater than is true or reasonable; "an exaggerated opinion of oneself" exaggerated, overstated .'' Sutro's Lee said Semtech's long-term prospects are solid because it has developed strong products in transient voltage suppressant circuits to protect chips from power surges An oversupply of voltage from the power company that can last up to 50 microseconds. Although surges are very short in duration, they often reach 6,000 volts and 3,000 amps when they arrive at the equipment. Power surges are a common cause of damage to computers and electronic equipment. ; an interface device, called a universal serial bus See USB. (hardware, standard) Universal Serial Bus - (USB) An external peripheral interface standard for communication between a computer and external peripherals over an inexpensive cable using biserial transmission. , that provides protection from electrostatic discharges (hardware, testing) Electrostatic Discharge - (ESD) One kind of test that hardware usually has to pass to prove it is suitable for sale and use. The hardware must still work after is has been subjected to some level of electrostatic discharge. ; and voltage regulators used in notebook computers. Semtech earned $7.7 million or $1.19 a share on sales of $65.4 million in its fiscal year that ended Jan. 31. The consensus of estimates calls for it to earn $1.84 a share in the current fiscal year and $2.29 next year. Semtech, founded in 1960, has 530 employees. It swapped 750,000 shares of stock last month to buy test-equipment specialist Edge Semiconductor. CAPTION(S): Chart Chart: (Color) STEEP DROP Shares of Newbury Park-based Semtech Corp. have droped 38 percent in a month. Daily News |
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