The last "dry" island: COMM CHIPS!
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.......Obviously, the immediate fallout will be most noticeable among the chip and chip equipment makers, but the knee-jerk reaction could provide some ample buying opportunities among chip companies that have a communication focus as sales of communication products have been driving record chip sales of late. Remember, Intel's business is basically PC-centric. The contribution from its wireless communications, network communications, and communications products groups is still a small portion of Intel's overall business, accounting for less than 20% of Intel's $8.3 bln in sales last quarter. Having said, the PC OEMs should be notable laggards in tomorrow's trading as well. With respect to communications-centric companies, if you're interested in doing some bargain hunting, you'll want to consider such names as Applied Micro Circuits (AMCC 189), QLogic (QLGC 91 5/8), PMC-Sierra (PMCS 225 11/16), Vitesse Semiconductor (VTSS 86), TriQuint Semiconductor (TQNT 40 1/2), and Conexant Systems (CNXT 47 5/16). The best opportunities in that space will be in those companies that derive a small portion of their total sales from Europe. |
