CUBE -- analysts say to buy it on (Intel's) weakness...........
CNNFN
SHOW: IN THE GAME 09:30:00 am ET
March 5, 1998; Thursday 10:22 am Eastern Time
DEBORAH MARCHINI, CNNfn ANCHOR, IN THE GAME: Intel is not the only chip-
maker under pressure. For a closer look at the whole industry, I turn it over
to fn's Greg Clarkin for our Sector Focus.
Greg, are they all being hit quite as hard?
GREG CLARKIN, CNNfn CORRESPONDENT: Actually, no. You know, Deborah, we're
seeing some bright spots here. We spoke to some analysts this morning that were
cautioning not to throw the chips out the window because of Intel's
announcement. Dan Scoval at Phone Stock and Company, is one of those analysts,
he says yes, Intel is the leading semiconductor maker in the world. But, they
only control a piece of the $140 billion pie and that's directly related to PCs.
He pointed a number of stocks that they've been telling their sales force all
morning to buy on weakness. They include C-Cube , LSI Logic >, and, two of
the stocks actually, I'll think of the third in a second.
But anyway, let's take a look, if we can, at a cross-section of the chip
business. You'll see some bright spots. Motorola , according to Scoval, this
company only derives about 25 percent of their revenues from semiconductors.
That stock up by 1/4, right now, against this backdrop of weakness in the
semiconductor business.
Advanced Micro Devices , they have a fairly unique situation on their hands.
Self-inflicted wounds, if you will, from the problems with developing and
producing their K-6 chip which is expected to challenge Intel's Pentium II.
Advanced Micro, yesterday, they had another profit warning. But, that stock is
down significantly from the levels it was trading at over the last year, which
is about $48 a share. It's gaining a little ground, today. Now, Xilinx , that's
down almost 2, 44 13/16. Scoval points out this stock has little PC exposure
and that is one company I was thinking of that Scoval is pointing to. It looks
attractive on weakness today.
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