To All:
A very bullish report:
Bob T.
>>Analog Devices (ADI) 67 5/16 +7 1/4: Chip stocks extending yesterday's gains, with SOX up an eye-opening 5.7% on the day... One stock leading the rally is Analog Devices (ADI)... In fact, watching ADI's stock bounce off key support at 60 reminds me of the Yogi Berra line" it's deja vu all over again." Back on 7/31, Briefing.com issued a bullish report on ADI, after concern over the industry's growth prospects knocked the stock down nearly 34% in a matter of weeks... At that time we noted that aside from favorable relative valuations, ADI was attractive from a technical standpoint, in that key support at 60 (congestion and 200-day moving average) held on the retreat... Bolstered by a strong Q3 earnings report, the stock shot up to the 100 area over the next four weeks... We all know what's happened to the tech sector/chip group since then... Despite all the bloodshed, however, ADI held above key support once again... The same can't be said for most of the chip stocks... Consequently, with October now in the rear view mirror, look for bargain hunting (on year-end seasonals) to lift the group modestly higher from here... And given ADI's relative strength, it should be one of the top choices of money managers looking to rebuild exposure to the sector... Bullish technicals not only reason ADI likely to outpace the sector on any recovery rally... Several weeks back, ADI preannounced better than expected Q4 earnings... In other words, traders need not fear an earnings miss... That's not to say that the company won't adopt a cautionary tone regarding out quarters, but ADI not scheduled to report results until 11/28... In other words, as long as the entire market doesn't implode, ADI should experience relatively smooth sailing for the next several weeks... Not sure if the stock will make it back to 100 this time around, but the 90 area definitely looks doable. ADI is projected to earn $0.50 for the fourth quarter, $1.49 for FY00 (+172%) and $2.40 (+61%) for FY01. - Robert Walberg, Briefing.com <<
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