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Published on: 1/25/2002
Last Visited: 1/25/2002
In the mid-cap arena, Pacific Growth Equities analyst Jim Liang likes Actel Corp. , a maker of field-programmable gate array chips that customers, often in the telecommunications industry, can program to fit their product needs.
"We believe this is a company that's well positioned to participate in the anticipated cyclical recovery in the communications semiconductor story," Liang said.Actel's market capitalization is $516 million.
It's also a lot cheaper on a price-to-earnings basis than its larger competitors Xilinx Inc. and Altera Corp. .Actel's forecast 2002 price-to-earnings ratio is 100, compared with 210 for Xilinx and 108 for Altera.Actel stock has risen 36 percent since Oct. 2 while Xilinx' has jumped 93 percent and Altera's has gained 62 percent.
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"To the extent the company can execute on its growth strategy and its new product roll-outs, it could close the gap on its valuation discount to its peers," Liang said.
Some analysts are also pointing to somewhat significant differences in performance between the large-cap companies they cover and the small- to mid-cap ones.
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