I found this through a news service I subscribe to. In my view this is the key to CY's recovery over the next 6 months - firming SRAM prices. Am I right in thinking that SRAM prices in the far east are good indicator of the type of SRAM prices that CY can expect for its products? If I weren't so scared ****less of the market as a whole I'd load up the truck with this stock. Happy trading!
(Published on Wednesday, August 06, 1997 at 00:39)
TAIPEI (AFX-ASIA) - Winbond Electronics Corp shares were higher on the continued rise in SRAM chip prices, dealers said. At 11:24 am, Winbond Electronic rose 3.50 to 81.50 twd with 116.11 mln shares changing hands, while the electronic sector was down 1.1 pct.
The weighted index was down 6.07 points at 9,913.61 on turnover of 126.65 bln twd.
Yeh Yu-fen, an analyst with Ta Fa Securities, said investors are happy about the company's fundamentals on a recovery in SRAM prices.
Increases in the company's 1997 profit forecasts are evidence of its improving fundamentals, Yeh said, adding that despite the entire electronic sector consolidating the stock is resisting selling pressure. She said based on current market conditions, SRAM prices are expected to continue to rise at least till October.
However, the analyst said investors should be cautious about possible short term profit taking following recent sharp gains.
"The stock is trading at a P/E ratio of about 32. It is increasingly risky," Yeh said. |
