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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: Scrapps who wrote (2693)	3/22/2001 9:50:04 AM
From: Bob Trocchi	Read Replies (1) \| Respond to of 2882

Scrapps... The great new products keep rolling out but until there is demand, there will be not real good growth. Found this today.. >>Lehman Says Analog Chipmakers Face 50% Downside Risk By Eric Gillin Staff Reporter 3/22/01 8:27 AM ET Lehman Brothers started coverage on six companies that make analog and mixed-signal chips, which end up in everything from telecommunications devices to scientific equipment. These chips are especially effective at taking real world phenomenon, like temperature, and converting that into a digital output. Unfortunately, these guys could be falling even more then they have in the past year. Despite the nifty science involved, business has been tough, especially given the downturn in tech spending. Analyst Seth Dickson started Analog Devices (ADI:NYSE - news), Linear Technology (LLTC:Nasdaq - news), Maxim Integrated Products (MXIM:Nasdaq - news), Micrel (MCRL:Nasdaq - news), National Semiconductor (NSM:National Semiconductor - news) and Sipex (SIPX:Nasdaq - news) at market perform, citing high inventories and low demand -- a critical problem for other companies, like electronics manufacturing service providers. And that problem has yet to be priced into stocks, according to Dickson. "Current valuations do not accurately reflect the risk to fundamentals. We believe there is as much as 50% downside for analog stocks," he wrote to investors on Thursday morning. The outlook for these companies is not good, really. Make sure kids are out of the room, because Dickson's comments are for adults only. "Near-term, industry fundamentals continue to deteriorate, causing us to believe the (June quarter) and calendar 2001 earnings estimates are at risk. Longer term, we believe pricing pressure and a global economic slowdown could prolong the industry correction into the second-half of 2001," he wrote. << Hard to believe that Dickson's comment about low demand and high inventories have not been priced into the stock. Lets see we are down for around 90 to 37!! My fear is that if it closes below 37, it will continue to drop to I do know where. Keep the faith. Bob T.