Hi Steve. From Thomson's:
AMCC -- Semicndtr-Intgrtd Circs -- Technology
08-Jun-00 11:53:56 Advanced Micro Circuits is bouncing higher today
after yesterday's near 10-point drop. Expectations of slower sales
growth to AMCC's largest client, Nortel Networks (NT), sent the stock
plunging. Analysts came out in defense of the company, suggesting
that any weakness in the stock is short-term. Today, AMCC CFO William
Bendush offered more reassurance, stating that the decline in NT
sales will not hurt the company's FY01 1Q sales. AMCC has rebounded
$5 3/4 to $102 3/4 on moderate volume. Four million shares have crossed
compared to the 10-day average daily volume of 7 million shares, but
well below Wednesday's 25 million shares. About 30% of total activity
stems from block trades, suggesting that institutional participation
is heightened. Despite the strong presence of institutional players
in the market, there is little institutional interest in the I-Watch
pre-trade market. As investors are not relying on institutional brokers
to work trades, this suggests that many of the participants are more
speculative in nature. Additionally, much of today's gains are related
to short-covering, following yesterday's plunge. Retail investors are
active as well, adding to the volatility. Most investors will likely
wait for further evidence of non-Nortel customer growth before adding
to their investments, which will keep a lid on AMCC's recovery in the
near-term. |
