NASDAQ:LLTC
$28.39
(3/19 10:58AM)
-1.1%
| Open | $28.87 |
Mkt Cap | $6.4 Billion |
| High | $29.1 |
52Wk High | $31.21 |
| Low | $28.3 |
52Wk Low | $20.26 |
| Volume | 1.6 Million |
Avg Vol 10D | 3.9 Million |
Ockham's Rating/Recommendation Summary
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LLTC Revenue
As a value investing shop, we are interested in seeing how LLTC's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 13.39x and the low end of the range at 8.69x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for LLTC of 4.47x is well below its normal historic Price to Sales levels. At a price of $27.60, LLTC is 60% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
LLTC Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. LLTC is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for LLTC, the current level of Cash Earnings compared to its historical levels helps identify where LLTC is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 31.02 and a historical low Cash Earnings per share ratio of 20.09, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for LLTC? From the Ockham perspective, we are looking specifically at LLTC to see if the market is recognizing the huge disparity between LLTC's past stock price to Cash Earnings ratio to today's levels. At a difference of 22% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at LLTC. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
LLTC Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from LLTC against the historic high and low levels over an available data range. Because LLTC has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In LLTC’s case, the estimated annual dividend is $0.92 producing a current dividend yield of 3.33%. The highest dividend yield from LLTC in recent history was 4.88% while the lowest dividend yield was 0.18%. LLTC’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 31.62% above the median which weighs very positively on our analysis of LLTC.
News Developing on Tech Trader Daily-Barron's for LLTC
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Linear Technology Corporation.
The Motley Fool CAPS data suggests that investors believe Linear Technology Corporation will beat the market in the foreseeable future. We consider LLTC as Undervalued at the current price of $28.68. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LLTC has been less covered in the news compared to the rest of our universe of stocks.
“… ” Here are his initial ratings: Outperform: Xilinx (XLNX), Altera (ALTR), Texas Instruments (TXN), LINEAR TECHNOLOGY (LLTC), Analog Devices (ADI). …”
Income Investors: A Discussion of LLTC and Dividends on Squawk On The Street
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of LLTC's dividends recently on Squawk On The Street.
The Motley Fool CAPS data suggests that investors believe Linear Technology Corporation will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LLTC has been less covered in the news compared to the rest of our universe of stocks. We consider LLTC as Undervalued at the current price of $27.60. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… We even have a dividend they're like LINEAR TECHNOLOGY that pays a 3% dividend yield and has a good rating by s&p equity analysts. …”
Mad Money Has the Latest News on LLTC
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on LLTC from Mad Money.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on LLTC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. In comparison to the other stocks that we follow, Linear Technology Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… My bad, mike. Lotc as so much was the case, LLTC, that is a great tsunami play. Is it as good as apple? …”
Check Out Street Signs and News on LLTC
Linear Technology Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Street Signs.
Based on our methodology, Linear Technology Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; LLTC has received less coverage from the financial media in business television and blogs.
“… LINEAR TECHNOLOGY is down 1% or so there. It was even though ubs sees upside in the quarter they have a buy rating on the stock. Lam research upgraded at ubs. Net gear up 3%. …”
Linear Technology Corporation News is Being Covered Right Now on Power Lunch
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on LLTC from Power Lunch.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Linear Technology Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on LLTC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… LINEAR TECHNOLOGY up higher. Net gear up by 3%. Vivus shy of just short of 5%. Let's go the brian shactman at the nynex. > > seed selling for a big rally. …”
Power Lunch: Will LLTC Test Its 52-week High?
An abnormally high price is obviously a joyous occasion for investors in that stock. See what Power Lunch was talking about for LLTC below.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Linear Technology Corporation has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on LLTC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… more 52-week highs in the tech sector, microsoft, red hat, LINEAR TECHNOLOGY, san disk and xilinx on the back of 102-point gain in the dow jones industrial. …”
Discussion of Debt at LLTC on Squawk On The Street
At Ockham, we look to make sure that any debt taken on by a company corresponds directly to increases is sales. Take a look at RazorWire for the latest on LLTC's debt from Squawk On The Street.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LLTC has been less covered in the news compared to the rest of our universe of stocks. We consider LLTC as Undervalued at the current price of $29.20. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe Linear Technology Corporation will beat the market in the foreseeable future.
“… I think semi conductor with the best leverage coming out of a LINEAR TECHNOLOGY has 60% spent margin but the operating level, emerging markets for technology growth is just > > …”
Linear Technology Corporation (LLTC) Discussed on Fox Business's Fox Business
Linear Technology Corporation is in the news. Find out how this impacts LLTC trading on Ockham Research.
But using the market scope advisor service, doing a screen on those with high quality rankings, companies such as altria in consumer staples, such as LINEAR TECHNOLOGY in the technology looking at the old florida power and light fpl in also taking a look at genuine auto parts. These are companies that have very high -- >> david: oil, chevron for example. Dividend. >> exactly.
“… at genuine auto parts. These are companies that have very high -- >> david: oil, chevron for example. Dividend. >> exactly. …”
Linear Technology Corporation (LLTC) Discussed on CNBC's Street Signs
Linear Technology Corporation is in the news. Find out how this impacts LLTC trading on Ockham Research.
Apple's board. Meantime, the chip stocks are really what's powering today's rally here as far as technology. Of course, intel is going to be the big kahuna reporting tomorrow after the close. Altera and LINEAR TECHNOLOGY both reporting tomorrow are hitting new highs. Finally, look at onyx form suitcles n a deal-- pharmaceuticals in a deal to buy a company. Sharon epperson is standing by at the nymex, but I think i'm >> yes, you are. We are going to talk to zane zane, are you there? >> excellent. Look, I have heard all the scare stories about, you know, other countries snubbing the dollar. According to some data you provided, new reserves are 37% in dollars, about half of what is normal. Is that true? >> yes, that's absolutely true, and that's likely to affect markets when they open tomorrow. We'll have the same thing that we saw on friday where we'll probably have government markets falling in price and junk bod
“… g new highs. Finally, look at onyx form suitcles n a deal-- pharmaceuticals in a deal to buy a company. Sharon epperson is standing by at the nymex, but I think i'm >> yes, you are. We are going to talk to zane zane, are you there? >> excellent. Look, I have heard all the scare stories about, you know, other countries snubbing the dollar. According to some data you provided, new reserves are 37% in dollars, about half of what is normal. Is that true? >> yes, that's absolutely true, and that's likely to affect markets when they open tomorrow. We'll have the same thing that we saw on friday where we'll probably have government markets falling in price and junk bod …”
Linear Technology Corporation (LLTC) Discussed on CNBC's Squawk On The Street
Linear Technology Corporation is in the news. Find out how this impacts LLTC trading on Ockham Research.
Over at think equity upping the price to 35 cents on bottom line for the first call estimate for tomorrow afternoon is 27 cents. They say shipments from what they've seen on intelligence notebooks have been strong. We're also going get other chip tomorrow we'll hear from LINEAR TECHNOLOGY and intel after the close ahead of the open on wednesday morning we'll hear from asml and lots of news on google. We have price targets up. One as high as $600. The other interesting thing on google is continuing conflict with apple and google over the you had eric schmidt come off the apple board because of google pushing into mobile phones and now the former ceo has come off the google board to concentrate and stay on the apple board. So this competition is getting this morning we also have apple amgen received an upgrade this morning to a buy from a neutral. They say they have some good things coming up in 2010. It's highest profile and mike huckman will have more on that and this company that does billing and electronic records
“… we'll hear from LINEAR TECHNOLOGY and intel after the close ahead of the open on wednesday morning we'll hear from asml and lots of news on google. We have price targets up. One as high as $600. The other interesting thing on google is continuing conflict with apple and google over the you had eric schmidt come off the apple board because of google pushing into mobile phones and now the former ceo has come off the google board to concentrate and stay on the apple board. So this competition is getting this morning we also have apple amgen received an upgrade this morning to a buy from a neutral. They say they have some good things coming up in 2010. It's highest profile and mike huckman will have more on that and this company that does billing and electronic records …”