RAZF some kind of action is going in at these levels.. on wireless this is what I think is relevant read for today..
<After a rough September and early October we were due for a bit of relief,
and this week we got it. Our Wireless Portfolio has been red hot over the
last few days, as investors seem to be warming up to the battered sector.
The biggest winner on the week was Finnish mobile phone maker Nokia (NOK,
$40), which shot 40% higher on the week, rising from the high $20's into
the $40's after topping third-quarter estimates (see article #2). The
news lit a fire under other wireless issues, and this summer's fear over
possible weakness in mobile phone sales (largely brought on by a revenue
warning from Nokia) now appears to be fading, which is great news for
wireless investors. Other big winners on the week included Nextel (NXTL,
$39, up 32%), Sprint PCS (PCS, $37, up 24%), AT&T Wireless (AWE, $22, up
18%) and Vodafone Group (VOD, $41, up 15%). AT&T Wireless appears to be
benefiting from the imminent breakup of parent AT&T, which will allow the
company to operate as a separate entity sometime within the next year.
On the downside, chip providers have taken a beating lately, with RF Micro
Devices (RFMD, $15) down significantly since its split just a month ago.
The entire sector has been weak, and on Tuesday National Semiconductor
(NSM, $24) lost over a third of its value following a stern revenue
warning. The market is now (and has been for some time in specific
segments) going into a knee-jerk reaction to any bad news that befalls it.
The news from National Semi is not particularly heartening for the
wireless chip industry. The firm is a large supplier of semiconductors to
the industry -- as is RF Micro. Using National Semi as a reference point,
we may be able to view the future performance of other component
suppliers, the likes of RF Micro, Motorola (MOT $23), and Texas
Instruments (TXN, $46), along with potential for the wireless device
manufacturers. They indicated that second-quarter sales would probably
decline between 6-8%, citing slower demand due to customers carrying large
inventories. Our take is that this is a temporary industry slow-down,
much of which is already in the stock prices of those stocks mentioned
above, and thus, we are not going to run out and sell our positions. In
fact, if the market holds steady, we would look to accumulate shares of
Texas Instruments and RF Micro at these deflated prices.
US 3G Update -- Late last week, the Commerce Department unveiled its plan
of attack for hunting down blocks of spectrum to be auctioned off to
potential 3G providers. The plan, which has been posted on a Commerce
Department Web site, also contains input from the FCC and the Defense
Department, and it outlines "the necessary steps that will result in the
licensing of third-generation wireless systems by Sept. 30, 2002,"
Commerce said. We bring you this information just to give you an
indication of how far away 3G is for the United States.
Good Wireless investing for the rest of the week!> |
