Have you issued any Buy reports recently? If so, on which companies?

Well, recently I reiterated my Buy recommendation on shares of semiconductor company Xilinx (XLNX), which is a leading provider of programmable logic devices. The major focus of the effort is the design of new ICs [integrated chips], the creation of software design tools, and cost reduction and performance improvements in products. An important ingredient to success is the company's ability to protect its intellectual property.

Xilinx's New Product momentum was the strongest in seven quarters, highlighting the company's improved execution and lead in new products versus the competition, and which should enable the company to regain market share in calendar 2008. We have adjusted our Q4 and FY2008/2009 estimates, and continue to rate Xilinx a Buy with a target price of $31. (The stock is currently trading around $22.50 per share.)

Isn't this company in a heavily competitive market?

The company is in an intensely competitive industry, with players of all sizes and locations. Competitors include other PLD makers such as Altera (ALTR) and Lattice Semiconductor (LSCC), as well as numerous application specific integrated circuit (ASIC) manufacturers. However, given the trend of PLDs replacing ASICs in digital systems, the long-term growth prospects for the firm appear to be bright.

We think the current share price for Xilinx is at an attractive entry point for long-term investors. We believe the company's growth will reaccelerate given the competitive advantages of the company s 90-nm and 65-nm technologies as well as the end to an inventory correction in the industry. Our $31 target is derived by applying a target P/E multiple of 24.2x to our fiscal year 2008 EPS estimate and 20.9x our fiscal year 2009 EPS estimate.