NATIONAL SEMICONDUCTOR CORP (NSM) 38 5/8 +1 5/16. What does it take to move this stock? Two weeks ago, after Morgan Stanley named
the issue one of its three favorites in the entire chip universe, with a "strong buy" rating and a 12-month price target of $45 a share, the stock
barely budged. Today, the company comes in 9 cents, or 25%, ahead of Wall Street estimates, and the shares can only muster a lousy 1 5/16
points gain. Although most NSM investors have figured out by now that this stock picks up its points the old-fashioned way, an eighth to a quarter
at a time, it never fails to amaze when the stock puts in a listless performance on the same news that would launch most chip stocks into orbit.
But don't feel too bad for NSM shareholders. After all, the stock has more than doubled from its one year low. For its fiscal 1st qtr National Semi.
earned $70.1 million, or $0.45 a share, on sales of $600.8 million. The 39% improvement in top-line results was led by a 40%
year-over-year and 8% sequential increase in bookings. According to the company, revenue was led by analog group sales, which were up more
than 50% over the year-ago quarter. Sales for both personal systems and communications and consumer groups grew almost 30%. By the way, the
company still plans to buy Cyrix (CYRX 31 3/8 +1 1/8), and expects the deal to close in November. |
