Zodiac Million

by admin on April 12, 2010

Zodiac Million

Zodiac Million

Linear Technology and Maxim Integrated Other Lucrative Niche in Semiconductors!

What the other niche in semiconductors is - that has generated gross margins in excess of 60%...... the answer - Analog/Mixed Signal chips. Devices that perform functions like analog to digital and digital to analog conversion, power supply regulation, DC to DC conversion, etc. There are four companies in this space, but I will focus on the two companies that are better managed, and have pristine financials.

They are Linear Technology Corp. (LLTC) and Maxim Integrated Products (MXIM.PK). Maxim is in the process of re-stating earnings - as it did some options-backdating-shenanigans, and hence, needs to go back all the way to 2005, and redo the numbers that it reported. In the most recent conference call, for more detail visit www.create-own-ebook.com Maxim’s CFO said that it would re-file all of the 10Q's and 10K's - by the end of 2008. Hence, there is more risk in buying Maxim’s stock [and hence a greater capital appreciation potential too].

Getting to the reason for this article, LLTC has historically sported gross margins in excess of 70% and Maxim, in the high 60s. This is only part of the reason for their exemplary numbers.

So, these are cheap, ubiquitous chips - found everywhere - primarily in consumer, industrial, automotive and military/space. Yet, the company had gross margins of 77.5% in Q3 2008 vs. 77.8% in Q3 2007. Moreover, for more detail visit www.eazy-ebook-money.com both companies have a culture wherein engineers constantly ask themselves if they can perform the same function - or perform the same function with more precision - with fewer devices.

Since these chips are small, one does not need a $2 Billion fib and $10 Million dollar mask sets to make the chips that they design. In fact the process that they use to make their chips date back a decade [0.25u for the curious types - when Intel is pushing 0.025u (u=1/1,000,000 of a meter)]. So, they can make their chips using depreciated equipment; test their chips using legacy testers - making LLTC a free-cash-flow machine [I sound like a cheap internet "home business" advert].

In the last reported quarter, Maxim had record revenues. It could not say much else. So, let us focus on Lilt’s numbers. The company used the entire debt facility mentioned in the prior paragraph to purchase its shares. If you want to know the gory details, pull up this file from the SEC.

So, in conclusion:
1. LLTC and MXIM participate in the highest margin niche in the semiconductor sector.
2. LLTC sells for an attractive valuation, plus the company pays a dividend of 84c/share/year.
3. They make cheap chips that are used everywhere. But LLTC and MXIM produce them cheaper.
4. They use legacy technology and equipment to produce chips - keeping a lid on capital expenditures.
5. LLTC has been aggressively buying back its stock.
6. MXIM may look risky, and is risky, but will probably do well - as soon as the uncertainties around the stock evaporate by the end of the year.
7. I used the words pristine financials for MXIM too - as they have over a billion in cash and no debt, and a very high gross margin business that generated record sales.

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Million Dollar Baby

Fruits Basket zodiac curse?

So, I have another question about an anime, fruits basket 🙂 its really a cute show so you should watch it :p anyway im confused. I haven't read the magna, so i guess it would answer my question, but oh well. So what's the ACTUAL curse? and did akito cause it? and can it be broken? like i know in the curse some people turn in to zodiac animals and such, but what's really the curse and how did it start? and why is everyone so afriad of akito, like what's he got to do with anything? well that like a million questions but pleasee someone help me. grrrr. thankss :0)

The curse is age old; so no-one caused it. It effects 14 members of the Sohma family in all; the 12 zodiac members, the cat, and the jade emperor. It apparently happened whent the current Sohma's ancestors were possed by the vengeful spirits of the zodiac. The curse is obviously that when somebody infected with the curse's body is weak, or they are hugged by someone of the opposite gender, they transform into their animal (apart from Akito). Akito is the supposed 'jade emperor' of the zodiac. This means that he has control over the other zodiac members, and even if he harmed them like he did to Hatori, they will forgive him and do his bidding.

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