When the going got tough,
Texas Instruments (Nasdaq:
TXN)
went shopping. Not only did TI buy some businesses outright (like
National Semiconductor), the company also bought other companies'
fabrications and equipment. Now TI sits with an extensive amount of
chip-making capacity - if and when the recovery really kicks into gear,
the
margin leverage could be impressive, but that capacity will weigh on results if the demand doesn't develop as expected.
Please read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Texas-Instruments-Leverage---How-Much-And-How-Soon-TXN-LLTC-ADI-ONNN0427.aspx
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