Kass expects the slowing in the cell-phone market to also have a negative impact on the semiconductor makers, which has prompted him to short Micron Technology (MU: news, msgs), Advanced Micro Devices (AMD: news, msgs) and Cypress Semiconductor (CY: news, msgs).
That's enough to throw this guy's credibility out the window. You'd figure that someone who got space in the almighty Barrons, of Alan Abelson fame (sarcasm intended), would be knowledgable enough to realize that flash is a negligible part of Micron's business when compared to DRAM. You'd figure that if he wanted to go after wireless-focused semiconductor companies, he'd tell people to short RF Micro or Anadigics or Triquint. What a joke. By the way, if Nokia went into the mid-20s, its P/E would be near 50, and if Qualcomm went to 30, its P/E would be 30. Where does Barrons get these people from?
Eric
PS - Allen, mightylakers, Raymond, thanks for the informative debate. Regarding the 384 kbps data rates, if a lot of demand gets generated for high-bandwidth apps (i.e. stremaing video, videoconferencing, docking stations) three or four years down the line, provided that carriers are willing to dedicate spectrum exclusively to data, there could potentially be some demand for HDR, assuming that it can offer significanty higher data rates than that. |
