Ray, if you're playing sectors, don't miss out on storage stocks. In case you missed it, WDC is my play. Another sector ready to rumble has got to be toys. MAT, ETYS, TOY, etc. (Ken...DSIT?)
On semiconductors, excerpts from today's WSJ:
<WSJ article today "Communications Chips Are Focus As Investors Study Chip Sector" (AMD, INTC, AMCC, BRCM, PMCS, MU, TER)
Joseph Osha, Merrill Lynch cited
"Now more than ever it's important for the market not to use microprocessors as the bellwethers for the whole industry"..."Again and again we see that happening, even though we are seeing more growth from communications, both wireless and wire line."
His concerns include:
"Relative to expectations, we have seen a pretty slow pickup in demand for microprocessors in September," ... "Normally this time of the year is when things get better, which is not evident in the past four weeks."
Osha On AMD
Expectations on AMD not as big as was for INTC. AMD has more of a chance to meat expectations than INTC. Thinks AMD will report 60 cents a share on revenue of $1.239 billion vs First Call est 62 cents a share. Reports Oct. 11.
Osha On communication chip cos
Bullish, but no big surprises due to current expectations
Alex Gauna, Banc of America Securities on communication chip cos
Thinks AMCC, BRCM, PMCS will beat est and give strong guidance going forward.
Article discusses concerns on dropping DRAM prices
A key tell will be MU earnings report on Wednesday. MU expected to beat est.
Eric Ross, Thomas Weisel Partners on communications test cos
Watching bookings vs revenue for cos in this sector like TER-thinks orders are weaker than expected for this Q>
Sergio |
