I'm glad that that I shorted 500 TXN shrs at the end
of the day, and this news came out. Please, don't tell me
TXN is no longer a semiconductor company.
biz.yahoo.com
Chip market oversupply, weak pricing and slow market
growth are likely to depress semiconductor stocks
versus the overall market for the rest of the year
--------------------------------------------------
Tuesday March 17, 4:48 pm Eastern Time
RESEARCH ALERT-Merrill chip analyst sees price war
NEW YORK, March 17 (Reuters) - Chip market oversupply, weak
pricing and slow market growth are likely to depress
semiconductor stocks versus the overall market for the rest of
the year, Merrill Lynch analyst Thomas Kurlak said Tuesday.
In a research note, Kurkak said the unfavorable market conditions
could drive stock prices in the industry to new lows this summer
as companies struggle to overcome slowing demand for end
products, particularly personal computers.
In addition, prices for 64-megabyte Dynamic Random Access Memory
(64 Mb DRAM), which are replacing older lower-cost 16Mb chips in
the market, are already falling and a price war could erupt in
the highly competitive DRAM market, Kurlak argued.
In a note outlining his neutral rating on DRAM giant Micron
Technology (MU - news), Kurlak said, ''It is still not too late
for investors to avoid what is shaping up to be a 64 Mb
bloodbath, in our opinion.''
Overall semiconductor market growth is expected to remain ''below
trend'' for another one or two years, he said. |
