joel...still high on chips, especially the low pe companies with diversified product line and no large inventory build up.....technically atml has bounced off of sub ten levels three times(and twice moved swiftly to eighteen..this is the third bounce).....xlnx technically looks good, but fundamentals may be weakening a bit...intc holding above 27.03 low...
question is will they be higher in six months, one year....?
i feel yes, technology yet to reach limits, and chip companies with strong management, great r+d and ip and cash on the books should weather the storm....unless fundamentals change, i would consider atml 9.75 to 10.25, intc around here, but would like to see some more volume at these levels, and xlnx 36-40....even like rmbs at these levels, high risk but not trading much different then the sector....
look at a chart of the soxx since october....it has been fairly resilient compared to other tech sectors.....and if other tech sectors gain strength with real world sales, then no doubt more chips are needed....
almost a win-win at these levels...downside possible, but upside much greater...noticed down on low volume, up on high volume for many semis
if you believe in the "houses theory"...then most semis have been recently downgraded...
good luck
ed a. |
