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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Paul Kern who wrote (9635)	5/21/2001 9:08:55 PM
From: Paul A	Respond to of 19633

I love that!!! ' BWTFDIK ' Ill drink to that! Watching this market will turn ANYONE into a drinker.. or in my case, a pothead.. : )

To: Paul Kern who wrote (9635)	5/29/2001 6:14:13 PM
From: RockyBalboa	Respond to of 19633

Chartered chit-chat: It's really remarkable that investors have reacted, almost with a yawn, to Chartered Semiconductor's (CHRT:Nasdaq - news - boards) week-ago warning to expect a 48% drop in revenue in the second quarter from the first -- twice as much as the 25% drop it had previously expected. The company, which acts as a foundry for communications chipmakers, including Broadcom (BRCM:Nasdaq - news - boards), griped about the "very low near-term visibility" of its customers. One very smart hedge fund manager who is short the stock (and who happens to have been this column's tipster to problems at Broadcom), says he believes Chartered should trade down (when fundamentals finally do matter) by as much as half from current levels. Broadcom and other communications chipmakers such as Vitesse (VTSS:Nasdaq - news - boards), PMC-Sierra (PMCS:Nasdaq - news - boards) and Applied Micro (AMCC:Nasdaq - news - boards), he believes, could eventually retest their lows, which for some of them could mean another 50% drop in their stock prices. "People feel it's so bad for these companies, that it will only get better," he says. "Of course, but how much better?" He goes on to say he believes "valuations are dumber now than they were at the peak" for many of these companies, because there's no new data that show the structural problems in the tech world have been resolved. It could just be, he adds, that rather than just being an inventory correction, for these communications chipmakers, it's a demand correction. Hardly something these companies can easily bounce back from, even after the inventory is back down to a manageable level. thestreet.com