To: Charles R who wrote (22931 ) 6/18/1999 3:16:00 PM From: Allen champ Respond to of 93625
RMBS is moving now ! 91 3/8 Chip Companies Cha-Cha Under the Admiring Eye of Analysts By Marcy Burstiner Staff Reporter 6/18/99 2:59 PM ET Tech stocks were mixed as Friday afternoon came around, with some chip stocks getting a boost from brokerage comments. Power-conversion chipmaker International Rectifier (IRF:NYSE) rose on comments from Salomon Smith Barney analyst Jonathan Joseph, who told investors he is seeing improvement in commodity chip prices. "Pricing in general is firmer, excluding DRAM, and prices are rising in selected segments such as SRAMs, EPROM, flash and commodity analog chips," he wrote. Stock prices should continue to rise in the sector, he said. "We are still early in the cyclical rebound," Joseph said in a phone interview. While the company's chip prices continue to decline, the rate of decline has been slowing, he said. The stock was lately up 1 1/4, or 11%, at 12 1/4. The analyst pointed out that another commodity chipmaker, Cypress Semiconductor (CY:NYSE), has also been rebounding lately as its chip prices have been rising. Since June 8, the stock has risen more than 40%. In early afternoon Cypress was up 11/16, or 4%, at 16 3/16. Chip-Equipment Makers Still Strong Goldman Sachs analyst Gunnar Miller says equipment orders remain strong. Data just released for May equipment orders show an industry book-to-bill ratio of 1.24, meaning companies booked 24% more orders than they billed out, a sign of healthy growth. Bookings totaled $1.4 billion, a 4% increase over April and a 29% increase over year-ago levels. "People interpret this dramatically," Miller tells TheStreet.com. "It's sort of like Alan Greenspan -- each eyebrow twitch means something." Companies seeing the greatest growth are makers of test equipment like Teradyne (TER:NYSE), he says, because of heavy demand for testers from communications chipmakers. Teradyne was down 3/16 at 67 1/2.