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November 15, 2005

Time to look at Linear Tech, Tues., Nov. 15, 2005, 6:43 AM

In May I wrote about two techs on the Cara Global Best 100 Companies list " SNDK & LLTC. At the time SNDK was @ 25.25 and LLTC @ 37.20. Today, SNDK is @ 61.35 & LLTC @ 34.49. Since both companies make my list based on good management, sound products and demand, etc. I feel it may be time to re-visit LLTC. I'd even go so far to switch out SNDK for LLTC at this point because I think there will be some profit-taking in SNDK in the weeks ahead.

I have looked over the latest SEC filing by LLTC, and I believe it may be ready for a re-bound. I particularly like the company's positive prospects for the next quarter. A good Q combined with some market promotion may give this sleeper a wakeup call and take LLTC sharply higher. Based on recent PR being generated, I expect this is what will happen before year-end.

Here's the link to the LLTC filing.

Here is the chart for both LLTC and SNDK (a wonderful company, but a stock that has already enjoyed a big run up, and now has more than met my general portfolio expectations).

Linear Tech may not be a player in the exciting flash memory segment of the digital age, like Sandisk, but its old analog technology systems will be in strong demand for many years, the business model is intact, the management is excellent, and the bottom line is that portfolio risk with LLTC is less than say for SNDK.

That is the nature of portfolio management: stick to the best quality companies, like these two in the tech space, and continuously switch out the ones with lowest risk and greatest potential upside. Over the years, you will be shocked at your performance.

After all, performance is what you are seeking.

Posted by Posted by Bill Cara on November 15, 2005 06:43:54 AM | Category: 45 Info Technology

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