Support for the $40 thesis from the "Real Money: Trader Track"
thestreet.com
Dave Nadig
AMD, ISIL, BRCM
3/23/01 2:30 PM ET
My two favorite charts today, both for the week and intraday, are Advanced Micro Devices (AMD:NYSE) and Intersil (ISIL:Nasdaq).
AMD has not only broken its crushing downtrend, it has blasted through horizontal resistance. The next meaningful resistance is 38. We've been long AMD for some time, down in the 18s, and it's just incredible to see this kind of action. Ultimately it's a value name -- at a PE of 10, it's still just incredibly cheap.
And ISIL? With Intel's (INTC:Nasdaq) move into the WiFi market, ISIL's dominance in wireless networking is complete. No matter how much Proxim wants to believe, the writing is on the wall: 802.11 is winning, and HomeRF is as good as dead. Luckily it took the stock a few days to catch up, giving investors time to catch the wave.
I also like Broadcom (BRCM:Nasdaq). No, not like it as in I wanna buy the stock, but I like the fact that it gave up yesterday's gains. More than any other sector, the communication IC companies didn't deserve yesterdays pop. It makes sense that it falls today. I like it when things make sense. (Long AMD, ISIL)
Jay Shartsis
AMD
3/23/01 2:53 PM ET
Dave mentioned Advanced Micro Devices (AMD:NYSE), which is in a class by itself. Today's action in the stock has completed a near seven-month head-and-shoulder bottom. A measured move projects to near 40 for the stock.
enjoy the weekend!
dh |
