Bear market in telecosm chip stocks.
For past two weeks, these stocks have plunged despite great earnings. In part, this might be due to slight decrease in chip book-to-bill ratio from 1.30 to 1.26 (according to briefing.com). If so, IMHO, it reflects seasonal slowness for chip sector.
The following stocks are at compelling levels: ATML, LSI, ANAD, RFMD, and TXN. ADI and XLNX are also at attractive levels. Many of these stocks are near their levels at end of May when NASDAQ was at 3086. I've taken partial positions in several of these stocks as LT holds (ANAD, TXN, LSI, RFMD, and XLNX). I think current levels provide attractive entry point for a sector which will heat up later in the year.
I can't imagine ANAD looking like a bad buy at 30 in December. |
