Wednesday, January 15, 2014

The Motley Fool: Linear Technology: Love the Story, But Not the Price

You can fill a lot of pages with what is right about Linear Technology (NASDAQ: LLTC  ) . Not only is Linear among the leaders in the analog chip space, but it has a long history of excellent profitability. In fact, profitability is so important to the company that it let go of Apple's business when the margins no longer met management's standards.


Looking ahead, there's real growth potential for Linear in the industrial and auto markets in the coming years. Linear isn't the only company prioritizing these markets, as ON Semiconductor Analog Devices, and Texas Instruments are there too, but the potential of grabbing a larger share of auto OEM content and leveraging the Dust acquisition in factory automation is compelling. Alas, the price is not so compelling and investors need to really be sure that Linear is going to continue topping estimates for the stock to work at this price level.
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Linear Technology: Love the Story, But Not the Price

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