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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Dale Stempson who wrote (4309)	8/18/2000 8:36:04 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 5867

As everyone knows by now, it has been a good week for semis. I thought the following article from Briefing.com was a good summary of some of the reasons for the good week. <<Chip Stocks Defended II : The Philadelphia Semiconductor Index (SOX) is up 20% this week. Investors can thank Morgan Stanley Dean Witter's chip analyst, Mark Edelstone, for much of that move as he lighted a fire under the chip and chip equipment stocks with his research note on Tuesday in which he suggested the semiconductor cycle has another 18-24 months left in it due to strong demand. His timing couldn't have been better since the chip and chip equipment stocks had been beaten up badly in prior sessions as concerns mounted over the sustainability of the chip cycle. Well, the chip and chip equipment stocks are getting a little more love today. This time, it is Joe Osha, semiconductor analyst at Merrill Lynch, who is adding fuel to the fire started by Edelstone. Claiming that the mid-cycle correction has run its course and that the industry will be underpinned by improved pricing and capacity constraints going forward, Osha is aggressively pushing the semiconductor stocks and is placing a particular focus on names in the communications-oriented and foundry businesses. Specifically, he would now be purchasing Texas Instruments (TXN 70 +2 1/2), Cypress Semiconductor (CY 46 +1), Atmel (ATML 36 9/16 +3 1/4), and Vitesse Semiconductor (VTSS 81 11/16 +1 11/16) as well as the following component stocks: Kemet (KMT 25 7/16 -5/16), AVX Corp. (AVX 28 3/8 +3/8), and Vishay Intertechnology (VSH 34 1/2 +15/16). He is also telling investors to focus on names such as ST Microelectronics (STM 62 5/16 +7/16), National Semiconductor (NSM 44 3/16 +2 1/8), Analog Devices (ADI 96 9/16 +4 1/16), Taiwain Semiconductor (TSM 36 3/16 +11/16), and Chartered Semiconductor (CHRT 86 3/4 +2 7/8). Aside from these specific calls, Osha has given the semiconductor group an added boost by raising his global revenue growth forecast for 2000 from 32% to 40%, and for 2001, from 21% to 26%. Interestingly, Merrill Lynch's chip equipment analyst, Brett Hoedess, is in agreement with Osha's comments on the semiconductor cycle and he is recommending investors now purchase Entegris (ENTG 10 9/16 +1 1/8) and MKS Instruments (MKSI 26 15/16 +3 15/16). Whether it was by design, or not, there was no mention of the view of Merrill Lynch's quantitative research group, which caused quite a stir last month when it lowered its rating on the chip sector from MARKET OVERWEIGHT to MARKET WEIGHT. Obviously, everyone's method of investing is different, but for now, Merrill Lynch's and Morgan Stanley Dean Witter's fundamental views are clearly taking precedence.-- Patrick J. O'Hare, Briefing.com>>