Microchip Technology, Inc. (NASDAQ:MCHP)

ddvl0 (56.94) Submitted: 11/4/2007 10:26:50 PM : Start Price: $26.14 MCHP Score: +25.85

Microchip has a solid business model and their customer base spans a large number of independent industries.

vbenotafraid (< 20) Submitted: 10/11/2007 5:35:31 PM : Start Price: $25.40 MCHP Score: +32.74

Since 2000 the annual lows (worst price of the year) have increased on average by 24% per year. See no compelling reason for future trend to not be similar. A few years ago Mark Edelstone called MCHP a proxy for the world economy; company's business is sensitive to sector gyrations, but as the world economy grows, so should grow MCHP. Solid, well managed company with an attractive dividend.

HonestK (99.24) Submitted: 9/23/2007 1:10:07 PM : Start Price: $25.13 MCHP Score: +20.40

A solid business that owns their niche. Customers who purchase Microchip's products cannot switch to a competitor's without paying a penalty. That penalty comes in the form of retraining costs and product release delays. That's clearly a moat.

PierreArcane568 (< 20) Submitted: 6/19/2007 10:43:49 AM : Start Price: $30.75 MCHP Score: +9.57

Semiconductor company successfully transitioning into a tech company. Pays a dividend to boot! Leader in its industry.

knudfool (97.73) Submitted: 4/3/2007 3:41:34 PM : Start Price: $28.19 MCHP Score: +12.57

Cash low debt and a dividend what I like to see. Share price and PE seems a little high. I like these more shareholder friendly companies.

caplo63 (< 20) Submitted: 3/23/2007 5:59:41 PM : Start Price: $28.95 MCHP Score: +9.51

Savvy mgmt; good research team; found their niche.

SLJordan11 (82.26) Submitted: 3/5/2007 9:41:25 AM : Start Price: $27.80 MCHP Score: +9.75

March 5 - accounced the 12-member PIC18F87J11 general purpose, high performance 8-bit microcontroller family, which offers up to 20% greater performance with 12 MIPS (48 MHz), enhanced peripherals and lower sleep power consumption.; also provides a wide range of program memory and peripherals, ranging from omst cost effective to feature rich.

NetscribeSemiCdr (50.63) Submitted: 2/20/2007 7:37:47 AM : Start Price: $28.34 MCHP Score: +12.83

Microchip develops and manufactures specialized semiconductor products used by its customers for a wide variety of embedded control applications. The company’s product portfolio consists of 16-bit PIC microcontrollers and 16-bit dsPIC digital signal controllers, which feature on-board Flash memory technology. In addition, it also offers a broad spectrum of high-performance linear, mixed-signal, power management, thermal management, battery management and interface devices along with EEPROMs and complementary micro peripheral products.

The company recently reported 6.9% growth in the sales in the third quarter of 2006 compared to the same quarter in the previous year. Its December quarter saw an overall semiconductor inventory correction during which almost all the semiconductor company’s reported a sequential decline in the revenues. Microchip although showed a sequential decline but it was far less than the peers in the industry showing a strong business model of the company.

The company has a strong competitive position as 80% of its revenues come from microcontrollers and users of these products are reluctant to change vendors because of long development cycles and proprietary designs which result in high switching costs. Historically majority of the company’s growth came from 8-bit microcontroller but its recent venture into the 16-bit and analog markets is expected to add-on to its growth. Furthermore, as customers develop more-sophisticated products requiring greater chip performance, it is expected that the demand for 16-bit microcontrollers will accelerate.

Microchip has a highly diversified end-user market as the company’s core products, microcontrollers, have a wide usage across many industries apart from the traditional PC industry. Adding to this the company has raised its dividend for 11 quarters in a row and has given indications of raising it further in the coming quarter despite of the downfall. This decision of the company along with its solid positioning in the market is expected to create confidence in the company raising its stock price in future.

dstnewman (97.67) Submitted: 1/11/2007 4:01:45 AM : Start Price: $27.81 MCHP Score: +12.15

Trying out a stock picker... We'll see...

MonkeyNdart (64.87) Submitted: 11/11/2006 11:40:21 AM : Start Price: $26.03 MCHP Score: +17.34

I have used PICs and was very favorably impressed. From the customer point of view, this the king of its niche.

Every embedded systems engineer knows what a PIC is. You probably own several PICS and don't even know it.

I don't know what's not to like about the stock.

BV1960 (45.99) Submitted: 9/15/2006 12:27:33 PM : Start Price: $27.26 MCHP Score: -7.57

Foriegn markets glut filled storage rooms get annual cleaning, market injected with cheap, low buck computers!

KidZer0 (< 20) Submitted: 8/31/2006 4:18:33 PM : Start Price: $26.82 MCHP Score: +7.65

Excellent customer focus, expanding portfolio of great products, corporate culture of teamwork and continuous improvement. For insight into this company and their management, read "Driving Excellence" by Steve Sanghi (CEO) and Michael Jones (former VP of HR).