There's no great short thesis on this company, as overall it's a pretty solid company. Just think it is overvalued vs the next couple years of expectations, and competition is always getting fiercer. Analog chips offer a buffer in downturns vs commodity chips, no doubt. But MCHP's end markets are among the worst you can have, automobiles, appliances, and other electronics. Not exactly a growth area to say the least. This companies revenues have been getting hit hard, and this should continue in the near and medium term. Perhaps some day it will be worth buying again, but there will likely be much better opportunities which will be obvious by the time MCHP's business begins to look good again. bottom line: At over $21, there's just a lack of enough upside, making selling too attractive.
$21.71 (03/27/09)
