Anyone have any comments on this "posting" by Michael Burke "SI Guru"?
<<2. CHIP AND CHIP EQUIPMENT stocks are an industry that will see overcapacity until Tiger Woods checks into a retirement community. Yes, this is a cyclical downturn we are suffering, but we are also seeing a secular downturn in margins that will hold even after the cycle turns. The most overpriced are the medium-sized companies in the logic, gate array, custom chip and mixed signal group, as there are still a number of bulls who believe that they will come roaring back to profit growth. A put buying program on Linear Technology (LLTC), Xilinx (XLNX), Maxim Integrated (do we still have segregation in this country? MXIM), Altera (ALTR), LSI (LSI-duh) promises huge profits on these disasters waiting to occur. Some may still have an accounting trick or two to pull out of a hat before admitting defeat, but capacity is coming on stream, systems on a chip are becoming more sophisticated and cheaper to produce, the big companies are eyeing their high margin businesses, and the end products are not selling as well as they have in the recent past. >>
JF |
