Watch out for the kiss of death by suckers...
Always make up your own (independent) mind and stick with it:
actually there is a ton of short suckers that piled into Varian - about seven days worth....
What the fuck happened to Trent - he used to be all over the semi space - he's gone I suppoese - I think Trent liked Starbuck -
Ashes, ashes all fall down
To: Donald Wennerstrom who wrote (44353) 5/14/2009 11:02:47 AM
From: Donald Wennerstrom 1 Recommendation of 44357
May 14, 2009, 10:32 am
Novellus: Cheap On Normalized Earnings, Merrill Says
Posted by Eric Savitz
Novellus (NVLS) is getting a lift from Bank of America/Merrill Lynch analyst Brett Hodess, who this morning raised his rating to Buy from Neutral, upping his target to $20 from $19.
Hodess asserts in a research note that “aggressive operating expense reductions” together with a significant expansion in new product offerings should allow the company to generate $1.50 a share in earnings at some point in the next cycle. He says the stock trades for 1.5x tangible book value, versus 2.6x for the average semi equipment stock. At 13x mid-cycle earnings, he says, the stock would be worth $20.
Note that Hodess sees the company posting a loss this year of $1.06 a share, with profits of 65 cents in 2010 and $1.95 in 2011.
Meanwhile, Standad & Poor’s analyst Angelo Zino yesterday upped his rating on the stock to Buy from Hold, while maintaining a $20 target. “While we expect some NVLS customers to refrain from investing in capacity expansion” near term, “we see some better-capitalized customers now looking to spend on advanced technology later this year and into ‘10. We also believe that semiconductor sales have begun to stabilize and expect utilization rates to trend upwards as the year progresses.” He also says that steep costs cuts and a plan to scale back its chemical mechanical planarization equipment business will allow it to return to break-even more quickly.
NVLS today is up $1.10, or 7%, to $16.86. |
