From Briefing.com: The real source of consternation, though, was the SOX Index, which started the day on a weak note, tried to rally, and then failed to take out resistance at its 200-day simple moving average (536)... When it did, selling interest in the semiconductor sector was renewed, and with the exception of a few instances, it didn't let up for the remainder of the day... The SOX did manage to end off its worst levels of the session, but just barely as it finished with a loss of 4.4%... Other notable laggards in the tech sector included the biotech, software and telecom equipment issues....
4:30PM Amkor misses by four cents (AMKR) 19.44 -0.87: Reports Q1 (Mar) loss of $0.63 per share, $0.04 worse than the Multex consensus of ($0.59); revenues fell 27.3% year/year to $349.6 mln vs the $344.8 mln consensus.
4:12PM Avant! beats by six cents (AVNT) 15.87 -0.14: Reports Q1 (Mar) earnings of $0.79 per share, $0.06 better than the Multex consensus of $0.73; revenues rose 15.4% year/year to $108.1 mln vs the $107.5 mln consensus.
2:05PM Jabil Circuit: weakness a buying opportunity-- TWP (JBL) 19.36 -0.70: Thomas Weisel believes that recent price weakness in the stock represents a good buying opportunity; believes co is tracking in-line with May qtr guidance, with strong operating margin improvements on a modest sales gain; sees strong sequential rev/EPS growth in Aug qtr as acquisitions contribute to the top-line and new programs reach full volume.
12:32AM Sector Watch: Semiconductor : The sector ran higher in early action but failed to take out its 200 day simple ma at 536. The pullback has accelerated in recent trade with the index approaching the lows from this week at 508/505. A failure here leaves the door open to the major chart barrier near 500 (Jan/Feb lows). Intraday takes a move at least back through 516/519 to improve the short term tone. Pacing the way lower today are: MU -4.8%, TER -4.8%, AMAT -4.1%, KLAC -4.1%, NVLS -4%, TXN -3.7%, BRCM -2.8%, LLTC -2.7%, NSM -2.7%.
11:29AM Nasdaq Composite Intraday : -- Technical -- Over the last five days the index has held at or above support at the 62% retrace of the Sep/Jan rally (1658). However, rally attempts have been stymied near the Feb low just under 1700. Without a breach/sustained action above this resistance, the index will remainvulnerable to a retest/breach of the April intraday low at 1640. The next support of interest is at 1628/1626 (Oct 19 low and bottom of Oct 11 gap). Intraday resistance at 1673/1675.
9:27AM Cirrus Logic upgraded at Pac Growth (CRUS) 11.40: Pacific Growth upgrades to MKT PERFORM from Neutral due to the firm's perception that downside risk has been reduced or eliminated as well as the new forecast for profits by the end of this calendar year.
8:20AM RF Micro Device upgraded at Piper Jaffray (RFMD) 17.56: USB Piper Jaffray upgrades to OUTPERFORM from Mkt Perform based on the belief that short-term and long-term visibility for RFMD has significantly improved entering the June qtr; in addition to a strengthening relationship with NOK firm believes the prospects for share gains with other top tier handset OEMs are excellent and that design wins in the 802.11 wLAN mkt represent additional potential catalysts going forward. Raises FY03 est to $0.18 from $0.15.
6:38AM Asian Markets : Nikkei -0.02%, Hang Seng +2.46% -- Asian stocks mixed. Hong Kong's Hang Seng pushed to a four month high led by the property stocks. Exporters underperformed in Japan on the back of the recent weakness in dollar/yen. Taiwan was hit hard on concerns about a glut in DRAM supply following Hynix's decision to reject the sale to Micron Technology.
2:44PM Cirrus Logic (CRUS) 12.17 +0.77: Shares of Cirrus Logic are higher this afternoon following the company's fourth quarter results released last night. Specifically, Cirrus reported a net loss of $0.12 per share which was in line with the consensus estimate. Fourth quarter revenues came in at $83.6 million just edging out the analyst consensus estimate of $83.5 million. The company also eased concerns about its operations going forward. On the topline, Cirrus now expects first quarter revenues in the range of $87.7 to $88.5 million versus the current consensus estimate of $87.4 million. On the bottom line, the company sees its first quarter net loss in the range of $0.06-$0.10 per share versus the current consensus estimate for a net loss of $0.09 per share. Importantly, the results also demonstrate progress on management's longer-term strategy -- namely, to refocus the business on its higher growth/higher margin entertainment electronics products and away from its magnetic storage business. With a reduction in its low-margin PC business and stronger wafer pricing on optical controllers, Cirrus has ramped its margins nearly a full year faster than many analysts anticipated. While it expects sales from X-Box systems to be down in the June and September quarters, it did follow up with several positive developments on its call. According to management, four Chinese DVD manufacturers have chosen Cirrus' MPEG-2 decoder, and an Asian DVD loader company has started taking volume shipments of Cirrus' optical controller. From an investment perspective, the focus on higher margin/higher growth business segments suggests multiple expansion is a realistic prospect looking out 12 to 18 months. Put another way, we expect Cirrus to have two drivers of longer-term price appreciation: 1) the improved financial dynamics of its more attractive target markets and 2) the prospect of a heftier price multiple as a consequence of its more robust business. While we continue to be positive on Cirrus' longer-term outlook, be aware that it doesn't project profitability until the December quarter. -- Mike Ashbaugh, Briefing.com
11:12AM Semiconductor Sector (SOX) : This always key index slumped roughly 18% over just an eight day span in the latter half of April taking the Nasdaq along for the ride. The most recent earnings data could be characterized as generally favorable but the guidance provided was apparently not strong enough for investors based on the valuation levels. Despite the breakdown, the index has shown some signs of improvement over the last few days after it tested and once again held near lows from Dec through March.
However, as we can plainly see from the chart above, the Sox index has failed during the recovery attempt to work back through its 200 day simple moving averages (black line) at 536 today. Follow through gains beyond this barrier and a chart level near 545 would be an indication of a more concerted buying effort developing as opposed to a short covering rally after support held. Took a look at a number of individual names in the sector with the following levels considered key near term resistances that must be taken out on a sustained basis to improve the tone. A failure would leave the index and the issues vulnerable to a retest/breach of the most recent lows. The levels are: TXN (31.75/32 range top/50 day ema); AMAT (25.2 range top, 20 day ema/50 day sma); NVLS (48.6/49.1-- 50 day ema/20 day ema); MOT (15.8-- 200 day ema/sma); LTXX (21.8/22 range top/200 day ema); ALTR (21.4-- 20 day ema, 22 50-- day ema/sma); INTC (29.2/29.6-- 20 day ema/200 day sma); BRCM (35.7/36.1-- range top/50 day sma); KLAC (61.5/62-- chart/50 day sma/ema). Jim Schroeder, Briefing.com
2:58PM ChipPAC (CHPC) 9.66 +0.64: This darling of the analyst community has more than recovered its losses during Feb's sector sell-off on raised co. guidance, impressive qtr reports, and analyst upgrades. CHPC turned in another stellar qtr last night; co topped ests by a penny at a loss of $0.15 and raised Q2 revs to $88.5-91 mln and EPS of ($0.07)-($0.09). Analysts praise the co: Robertson Stephens believes the fundamentals at CHPC continue to strengthen and that its Q2 is on track to meet their recently raised ests. Merrill Lynch maintains their near-term and long-term Strong Buy ratings on the co's greater leverage towards advanced technology, a lower cost structure, and a valuation at a discount to its comps.
12:24PM Cirrus Logic (CRUS) 12.73 +1.33: Stock jumps 11.7% today on the heels of in line Q4 earnings report. Company also gave Q1 guidance of pro forma loss of $0.06-0.10 vs current consensus for net loss of $0.09. Based on results, Pacific Growth Equities upgraded to MARKET PERFORM from Neutral, citing firm's perception that downside risk has been reduced and the new forecast for profits by the end of this calendar year. Also, Adams Harkness reiterated Buy as visibility is trending up.
finance.yahoo.com
Nothing but good news and those bad old blues...
RtS |
