you're absolutely right about 3-5 yr time frame. however, i think SMTC may have seen it's haydays in the past year.
in the midst of the slow down, earnings fell 68%. that is before all the computer makers, electronic manufacturers and so forth cut spending. thus, how much further do you think earnings will fall? SMTC is not the only competitor in this market and their tech can be replaced both another co. this isn't out of the questions.
pricing pressure will surely eat into their existing earning. with this view, their top line growth and bottom numbers will be hard to maintain.
in the past, p/e of 54 was acceptable. not anymore. computers being replaced is likely to occur, however, this doesn't mean SMTC can justify sky high prices.
SMTC has more room to go down. if fundamentals should change, this could drop further to the mid to high teens.
long term 3-5 yrs, who knows. but for the next few months, downward pressures are likely to eat into the share price.