Tony,
Apparently Fitzgerald is not talking to the semi execs such as those of TSMC or Intel<see Bolded> And why would you put out a Buy on stocks which you suggest moving to an underweighting?!?!<again, see bolded>
Chip gear companies ready for expo
By Janet Haney, CBS.MarketWatch.com
Last Update: 12:43 PM ET Jul 7, 2000 NewsWatch
Latest headlines
SAN FRANCISCO (CBS.MW) -- Semiconductor equipment shares rose Friday, after Banc of America Securities started coverage on nine companies in the sector, just ahead of an industry exposition.
The Philadelphia Semiconductor Index ($SOX: news, msgs), a key barometer of 16 chip and chip equipment stock movement, was lifted by 3.5 percent in recent trading. The Index is still well off its all-time high of 1,332.73, set on March 10.
Banc of America Securities began coverage on nine semiconductor gear companies with “buy” ratings right before the much-anticipated SEMICON West exposition in San Francisco and San Jose, Calif. next week. The trade show and conference is expected to yield product announcements from Novellus (NVLS: news, msgs), Applied Materials (AMAT: news, msgs), Honeywell (HON: news, msgs) Specialty Chemicals, as well as others.
Analyst Mark FitzGerald initiated coverage on such chip equipment heavy hitters as Applied Materials, KLA-Tencor (KLAC: news, msgs), Lam Research (LRCX: news, msgs), Novellus, Asyst Technologies (ASYT: news, msgs) and four others.
Responding to the news, KLA-Tencor shares jumped nearly 8 percent to 54 29/32 and Teradyne advanced 5 1/16 to 80 3/4.
But FitzGerald was somewhat cautious about longer-term fundamentals.
“The risk is increasing that current fundamentals are not sustainable more than 6 to 12 months out,” FitzGerald also wrote in research note. “We recommend moving to an under weighting in the group during periods of strength.”
Meanwhile, Motorola (MOT: news, msgs) will report its second-quarter earnings on July 12. Analysts surveyed by First Call expect the tech giant to earn 23 cents a share. Programmable logic device maker Altera (ALTR: news, msgs) is expected to release its second-quarter results on July 13, with a consensus view of 44 cents per share. |
