Some comments from JMP securities:
<<INDUSTRY: JMP Securities Previews March Quarter for Semis [delayed]
Ridgeland, MS, APR 08, 2004 (EventX/Knobias.com via COMTEX) -- JMP Securities expects the companies within its Semiconductor universe to meet or exceed expectations for the March quarter (1Q04), and is also taking a positive stance on guidance for 2Q04. Following a strong C4Q03, they expect seasonally lower chip demand for PCs, mobile phones, and consumer electronics in 1Q04. They believe new technology drivers and a stronger tone to global economies and corporate IT spending could potentially drive the recovery beyond 2005. They recommend accumulation of lagging large-cap names with operating leverage such as MU, AMD and ISIL, and small-cap names such as MU, TMTA, PSEM and EXAR.
JMP Securities also finds small cap stocks with new product stories or cyclical operating leverage (such as TMTA, PSEM, MU and EXAR) more attractive at this point in the cycle.
They expect INTC to report seasonally down 1Q04 results. In contrast, cell phone-related companies such as TXN and NSM will likely experience better demand trends and only mild seasonality. Meanwhile, they think industrial-oriented analog and communications-oriented companies such as LLTC, MXIM, ISIL, MCRL and EXAR will likely post good sequential growth in 1Q04. MU will benefit from sharply higher DRAM pricing and robust bit demand growth in 2004/05 and from tightening industry capacity. Also, AMD, TMTA and PSEM are turnaround value names that will likely post solid results and should signal good sequential growth for 2Q04.>> |
