More Briefing.com notes from Friday: 2:39PM Micron estimates cut at Lehman (MU) 23.64 +0.14: Lehman cuts ests well below consensus for MU due to lower pricing resulting from moderation of memory per box increases and weak PC demand; cuts May qtr rev ests to $834 mln from $1.06 bln (Multex consensus $996.2 mln), cuts FY02 rev/EPS ests to $2.8 bln/($0.43) from $3.4 bln/$0.01 (consensus $3.2 bln/($0.18)) and FY03 to $5.0 bln/$1.60 from $5.9 bln/$2.25 (consensus $6.3 bln/$1.86).
1:27PM RF Micro Device (RFMD) 16.89 -0.23: After meeting with mgmt, Thomas Weisel believes the June qtr is tracking to deliver solid results; customer diversification continues as GSM/GPRS handsets from tier-1 OEMs gain traction. Firm ests that lighter sales to RFMD's leading customer, NOK (over 50% of revenues in FY 2002) will be more than offset by strength in other areas; suspects that Samsung continues to be a growing customer for RFMD in both CDMA and, more recently, in GSM, in addition to MOT, SI, and ERICY. Thomas Weisel also sees greater revenue opportunity per phone, with sales of RFMD's WLAN products last qtr ramping quicker than expected.
10:01AM Chicago PMI jumps to 60.8% in May : The Chicago PMI was much stronger than expected at 60.8% in May vs the 55.0% consensus; this is good news for the manufacturing sector and the market. The new orders index jumped to 65.6% from 59.0%, also an encouraging number.
9:50AM Michigan Sentiment index 96.9 vs preliminary 96.0 : The final May reading on the Univ of Michigan consumer sentiment index was 96.9, slightly higher than the preliminary reading of 96.0, but of little consequence.
8:02AM STMicroelectronics: positive comments by Merrill (STM) 27.38: Merrill Lynch believes that only France Telecom would be interested in selling shares in STM after the June 9 lockup, but their 3% stake is not enough to dislodge the share price materially. Firm says risk/reward is tilted towards the upside due to low valuation, positive semi momentum, and an improving economy. Price target is $40.
8:00AM SIA reports 8.2% decline in April Semi Sales : The SIA reported that April Semiconductor sales fell 8.2% yr/yr but improved 11.1% sequentially. According to SG Cowen, the yr/yr number represented the smallest decline since 3/01. Among strong sub-segments in terms of sequential growth were PLDs, Flash, SRAM, Analog, microcontrollers, and discretes.
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Don, my list of oversold semiconductors has risen to 58 now. Although it once was at one point over 100 last year this number is extremely high. If things go as I see them unfolding then the SOX has a good chance of finishing the week higher than it opens.
RtS |
