Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Can Linear Technology Match Quality With Growth?

High-performance analog specialist Linear Technology (NASDAQ:LLTC) runs itself differently than most semiconductor companies; Linear will turn down business that doesn't meet its margin targets and has maintained an almost unbelievable level of year-in year-out free cash flow generation. Linear hasn't registered all that much growth, though, and for all that the company's great margins matter, the company isn't as generous in sharing its prosperity with shareholders. Amidst various valuation methodologies Linear looks somewhere between 12% overvalued and 12% undervalued, and although the company has some interesting growth opportunities, it may take more generous payouts to move the shares significantly.

A Respectable End To Its Fiscal Year

Linear came in on target with its fiscal fourth quarter results. Revenue...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details