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Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: DJBEINO who wrote (7807)	6/26/2000 5:01:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 9582

from Briefing.com today: Alliance Semiconductor (ALSC) 29 1/4 +7/8: Not all semiconductor stocks are trading higher today, but Alliance Semiconductor is after the supplier of high performance memory and memory intensive logic products issued a positive earnings pre-announcement for its fiscal first quarter. Of course, that announcement may not be much of a surprise to ALSC shareholders following Micron Technology's (MU 89 1/2) impressive earnings results, and the daily reports of rising memory prices tied to industry demand and capacity constraints. In fact, we would argue that there is no question the market was expecting good things from Alliance Semiconductor as its stock has soared 34% in the past month. That may help explain why shares of ALSC are up only modestly today despite the company's contention that it expects to report fully-diluted earnings per share of $0.10 to $0.13 for its first quarter versus the First Call consensus estimate of $0.06 per share. Nevertheless, the stock has likely avoided a "sell-the-news" response due to its supportive claim that booking activity is very strong as evidenced by its total backlog which now exceeds $100 million. It hasn't hurt either that average selling prices for SRAMs and DRAMs continue to rise and that the computer industry is entering its busiest time of year with the back-to-school and holiday shopping seasons on the horizon. Another telltale sign of the strong demand for memory products can be found in ALSC's first quarter sales which are projected to be between $44 million to $46 million. That will represent a sequential increase of 53%-60% and a whopping 335%-355% gain from last year's fiscal first quarter. The company acknowledged, too, that it believes full-year sales may now exceed $200 million which would be more than double FY00 sales. Suffice it to say, that's the kind of news growth investors like to hear; and provided SRAM and DRAM prices don't decline in material fashion, that's the kind of news that should leave investors inclined to buy the dips in ALSC.