Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip maker Linear Technologies
With that in mind, let's take a closer look at Linear Tech's business, and see what CAPS investors are saying about the stock right now.
Linear Tech facts
|
Headquarters (founded) |
Milpitas, Calif. (1981) |
|
Market Cap |
$5.26 billion |
|
Industry |
Semiconductors |
|
TTM Revenue |
$1.07 billion |
|
Management |
CEO Lothar Maier (since 2005) CFO Paul Coghlan (since 1986) |
|
Return on Capital (average, last three years) |
20.3% |
|
Dividend Yield |
3.7% |
|
Competitors |
Texas Instruments
Analog Devices |
|
CAPS members bullish on LLTC also bullish on |
Apple
Johnson & Johnson |
|
CAPS members bearish on LLTC also bearish on |
Amazon.com
JPMorgan Chase |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 649 of the 675 members who have rated Linear Tech -- or 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include FoolishDiver and All-Star reeshau.
Last month, FoolishDiver listed several of the stock's bullish qualities: "Excellent margins, aggressive cost cutting by management, increasing dividend, bottoming of economy and corresponding inventory reductions by customers leading to higher demand."
In a pitch from April, reeshau expands on that:
Although Linear suffers from cyclical business effects, its products are very different from the commodity-level flash memory chips. Analog chip makers are often bunched with the rest of the semiconductor industry, but they are a smaller, defensible niche. Linear has one of the best positions in this niche, with high [return on invested capital] and margins.
What do you think about Linear Tech, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.
