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Strategies & Market Trends : APMP (formerly APM)

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To: srvhap who wrote (9069)12/2/1997 11:28:00 PM
From: srvhap  Read Replies (1) of 13456
 
Why is SSPIF is this strong? Cont.

Another reason for the strength is the area of business SSPIF is in. The Digital Signal Processor (DSP) market is heating up. cheap computers and chips that will become through away are coming IMHO.

also..

"Kurlak warns investors not to be fooled by a bounce he
expects to occur in these stocks during the first
quarter. Semiconductor makers are likely to recover
slightly at that point because chip users will realize
they ran inventories down too low in the fourth
quarter, overreacting to a decline in demand. But that
first quarter rally will be short lived, and should be
used as an opportunity to cut positions in
semiconductor stocks, Kurlak says.

Still, all is not negative in the chip sector. One
pocket of strength should be companies that make
analog chips, or those that process real-world signals
(like temperature, pressure and sound) instead of just
binary codes
. Analog chip makers are relatively safe
because their products are not in PCs, says Peck.
Three firms in this area that he likes are Analog
Devices (NYSE: ADI), National Semiconductor (NYSE:
NSM) and Linear Technology (NASDAQ: LLTC). But even
these stocks will run into trouble if the problems in
Asia get much worse and a serious economic slowdown
occurs, which would cut into demand, Peck warns."
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