Picked this up on the ASND thread...
Message 5325843
It's from a thestreet.com article (which i couldn't find on their
site BTW)...
Here's the highlights...
"I like to go one more layer down," says Landis. "Open up
the gear from Nortel, Ciena, Cisco and Lucent -- and what do
you see? You see chips from PMC Sierra (PMCS:Nasdaq),
Applied Micro Circuits (AMCC:Nasdaq), Vitesse
(VTSS:Nasdaq), Transwitch (TXCC:Nasdaq) -- now you're
singing my song."
Chips stocks, of course, have been crushed across the
board by the economic downturn in Asia (that's another Wall
Street cliche for bank runs, armed uprisings, developing
nation streets choked by smoke from burning tires...). But
there's a big difference between low-tech dynamic
random-access memory chips and the super high-end chips
from PMC Sierra. "Every time some pundit comes out and
says DRAM pricing is still really weak, all the chip stocks
fall," says Landis. "Traders on the Street don't know what's
in their portfolios, so they just sell. And that's when I buy."
Landis hasn't quite bet the farm on these chip companies,
but more than 10% of his fund is in these names, and PMC
Sierra is now his single largest holding. Landis says he's
tempted to buy more. "It's hard to double down on your
largest position," says Landis, "but I think these guys are as
close to bulletproof as a chip company can be."
But of course that's exactly why we all bought PMCS in the first place, right? |
