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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Bulldozer who wrote (2793)	9/28/1999 6:41:00 PM
From: George Sepetjian	Read Replies (1) \| Respond to of 3818

Briefing.com's analysis of the chip sector. Sector And Individual Stock Rankings Ratings Key: 1. Outperform 2. Slightly Outperform 3. Average 4. Slightly Underperform 5. Underperform. A split rating such as 2/3 refers to short-term/long-term and is used when there is a particular short term influence of note. Revisions Key: N/new, +/upgraded, =/unchanged, -/downgraded Most Recent Sector Rating Upgrade/Downgrade SEMICONDUCTOR.........3/2...........09/24..........(=) At the time of our last report the chip sector was just beginning to hit its stride. Admittedly, we were less than sure that demand would live up to the market's lofty expectations, citing uncertainties regarding the strength of the Asian economic recovery. But demand has exceeded even the most optimistic of forecasts, with worldwide chip sales posting double-digit monthly gains... And much of the strength has come from Asia... Add the strong demand to reduced supply and for the first time in a while, chip prices have trended sharply higher... DRAM prices have moved from under $5 to over $15... Given projections for solid PC growth over the next couple of quarters, the Internet boom, strong growth in wireless and favorable pricing conditions, the outlook for the sector remains quite good. Consolidation as a positive factor. However, the near-term outlook is clouded by the recent earthquake in Taiwan, the Y2K bug and by historically high valuations. The latter is particularly true in the communications-chip companies such as PMC-Sierra (PMCS), Broadcom (BRCM), Vitesse (VTSS) and Conexant (CNXT). Stocks such as these are now priced for perfection. We risk being overly conservative again, but at current levels the risk/reward ratio is at best neutral and at worst modestly bearish. So while we like the group's intermediate- to long-term chances of outperforming the overall market, Briefing.com expects the group to merely keep pace over the short-term. Stocks: Advanced Micro Devices (AMD), Altera (ALTR), Analog Devices (ADI), Atmel (ATML), Broadcom (BRCM), C-Cube Microsystems (CUBE), Conexant (CNXT), Cypress Semiconductor (CY), Intel Corp. (INTC), LSI Logic (LSI), Lattice Semiconductor (LSCC), Linear Technology (LLTC), Micron Technology (MU), Motorola (MOT), National Semiconductor (NSM), Rambus (RMBS), Texas Instruments (TXN), Vitesse Semiconductor (VTSS), Xilinx (XLNX).