I am bearish on MCHP. According to Mark Hulbert's MarketWatch.com e-article of 9/13/02, 4 newsletters recently either sold MCHP from their model portfolios or recommending short selling it. The most recent Yahoo Finance-reported insider sales or buys were $771,000 sold by one officer and $6,073,000 sold by another officer. I checked from 5/02 through the present and there were no reported insider buys on the open market. Below for more info:
According to Multex's online ratio comparision chart, price-to-sales ratio for MCHP is 7.04 compared to the industry's 3.84; and price to tangible book for MCHP is 3.71 compared to the industry's 2.57. It is true that MCHP's most recent gross margin of 50.87 beats the industry's 41.38, but on five-year-average gross margins the difference all but disappears (MCHP 50.45, industry 49.97). Chartists might find MCHP's 10/9 and 10/10 charts interesting, as both appear to show stock price falling in last hour of trading.
To the "buy" advocate who replied today on this post: I agree the newsletters preceded October. But (a) the ratio comparisons were from today's Multex and thus as current as I could find; (b)why would a newsletter recommend selling MCHP in August or Sept. if it thought it would rally and then sustain the rally anytime this year? Newsletters are not daytraders; and (c) who among us believes the last two or three Octobers have been a good month for U.S. stock market in general and growth stocks in particular??
People may disagree with a bearish view on MCHP; so be it. They can have their honest opinions. IMHO, the data is bearish for this year. If you profit either long or short on this stock, please consider giving some of the profits to your favorite charity.