Brice A Guckien: I've been "pounding the table" for followers of this thread to load up on chip stocks for weeks. There isn't a semiconductor analyst who concurs with SSB's Jonathan Joseph that we are nearing the peak of the semiconductor cycle. I view NOK and ERICY's recent warnings as additional evidence that there is still strong demand for chips. Nearly ALL of them are selling at bargain-basement levels -- there are too many to choose from. In January and February 2001, these prices will seem as ridiculous as RBAK at $60, JDSU at $80, NTAP at $60, etc. did this Spring.
FWIW, I've tried to "stick with quality" and have bought the following: TXN, AMAT, NVLS, ATML, XLNX, ADI, IDTI and LRCX. I already have large positions in AMCC, PMCS, and RFMD.
RFMD is the one stock that I am having difficulty deciding on. I would like to add to my position since it has REALLY sold off after Nokia's warning, probably because
its chips are primarily used in handsets and mobile phones. Also, it has recently closed a $350 million offering of 3.75% convertible subordinated notes, which also may have depressed its price. Would you be a buyer of RFMD in the mid-60's? Your opinion would be appreciated. |
