hinking of grabbing an ARBA's Roast beef sandwich on the pre-earnings pullback.
I'm thinking of buying more PMCS, it's in a bullish
ascending triangle formation and the earnings are coming out
thursday afternoon.
If the numbers are robust and guidance is good, it could
blow through it's flat 200ish top, much like BRCM did when
it blasted through 180 on it's way to 240.
the chart patterns are similar and the PE on PMCS makes
them look like a pauper to BRCM and BRCD....
now if PMCS has any softening this is not going to work.
they have had those really nice 81% margins.
any thoughts?
EDIT here is SSB's
7:15 PM update on PMCS's Q:
----Investment Overview
PMC-Sierra is enjoying very strong business momentum, with networking chip
sales likely to increase at least 20% sequentially (our published model
estimates 18%). Margins remain at the top of the chip industry, so there is
good upside potential to EPS expectations.
Bookings have also been solid, creating strong backlog coverage for the
September quarter. We expect another quarter of strong double-digit
sequential sales growth is in store, likely much better than our current
model of 9% growth.
We believe there are several factors behind PMC-Sierra strong performance.
First, the growth in broadband communications markets is benefiting most
participants, and PMC is no exception. More uniquely, PMC has been seeding
the market with an ever-growing array of specialized communications chips.
As those designs bear fruit, the market's inherent long product life cycles
is causing successive vintages to layer on top of one another. Lastly, we
believe the company has been gaining market share in selected communications
chip markets, most particularly T/E carrier chips (at the expense of
Infineon, Lucent, and Intel/Level One).
PMC-Sierra was again active in building out its technology portfolio in the
June quarter, acquiring two companies that expand its network edge presence.
Malleable Technologies adds Voice-over-Packet to PMC's product mix, while DSP
maker Datum Telegraphic represents PMC's entry into the RF processing space
with a product used to groom signals for amplification in the radio frequency
section of wireless basestations.------ |
