One of Osha Joe's "better calls"
JUNE 18, 2001
IT 100 -- ANALYSTS' PICKS
Joseph Osha
Analyst, Merrill Lynch & Co.
CATEGORY: Semiconductors
STOCK PICKS: Transmeta (TMTA), Texas Instruments (TXN), Linear Technology (LLTC)
Investing in semiconductor stocks nowadays might take you on a path where only fools dare to tread. With PC and cellular-phone sales expected to remain weak for the rest of this year, many chip stocks have tanked. But Merrill Lynch & Co. analyst Joe Osha says there are a few poised to make a strong comeback, with products aimed at promising mobile and portable markets. Companies that provide powerful, smaller chips that are less of a battery drain will capitalize the most, he says.
A favorite is Santa Clara (Calif.) upstart Transmeta Corp. (TMTA ), which makes chips that offer the most performance for the fewest volts in notebook computers and other electronic devices. The only chip stock Osha rates a "buy," Transmeta has a product "that's very well-suited for the direction the portable device market is taking." Osha expects Transmeta's shares to rise nearly fivefold in the next 12 to 18 months, to 61 from 12 today.
[ Note - 9 months later, TransMeta sells for $3.10 - just a little shy of Osha Joe's $61 target ! ] |
