HeeHee, here's a little blurb on the semis that made me feel better, note the use of the word "spot":
A Big Board debacle that caused more hurt on the NASDAQ was the
DLJ Hong Kong analyst call on Micron(MU). With the Semiconductor
Sector still reeling from USB Pipper Jaffray's Tuesday downgrade
of INTC, DLJ's Boris Petersik lowered his rating on MU from a
Buy to an Underperform. Huh. Sounds like "Sell" to me!
Especially considering that he slashed MU's price target to $50
from $122! Sounds like this guy didn't do his homework the first
time around. Citing an earlier-than-expected drop in DRAM spot
market prices and expected weaker pricing into September, Petersik
essentially commented on the entire sector. He claims that
inventory build-up among manufacturers will possibly lead to a
DRAM flood in the spot market, pressuring prices down. But, DLJ
seems to be the lone ranger on this call. Many other notable
semi analysts came out in defense of MU and the DRAM market as
a whole. Merrill's Joe Osha acknowledged recent pressure in the
DRAM spot market, but doesn't see it as a meaningful indicator
several months out. And that's probably because it's the spot
market, being short-term in nature. MU got crushed with an 11%
drop of $8.63 to $69.88. Falling in sympathy were: INTC(-3.56),
ALTR(-3.38), KLAC(-5.75), and AMD(-2.75). The Semi Index(SOX.X)
lost almost 6% today. |
