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

To: RockyBalboa who wrote (10967)	6/20/2001 5:50:29 PM
From: $Mogul	Read Replies (1) \| Respond to of 19633

LSI Logic (LSI) 18.07 -0.30: Company to fire 3% of its workforce according to CNBC. but everythig is ok with the Semi's... this Osha changes his mid from week to week... =DJ Chip Stocks Down -2: Merrill's Osha Skeptical By Maxwell Murphy Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Semiconductor companies saw their shares fall Wednesday, amid bad news and an overlying concern on Wall Street that the chip sector may not be headed out of the doldrums soon. Merrill Lynch's Joe Osha has been active the past couple of days issuing company research updates, the results of "channel checks," that suggest that chip makers are poised to deliver worse-than-expected financial results for the current quarter. Asked when this weakness might turn around, Osha said, "I don't know...and you don't pay premium valuations for I don't know." Many semiconductor companies stocks are pricing in a recovery that by all accounts isn't there yet, and "I don't like it," he said. Tuesday, Osha said Advanced Micro Devices Inc. (AMD) will likely miss by a nickel analysts' consensus second-quarter earnings estimate of 27 cents a share. Further, rival Intel has suggested that unit shipments will rise quarter over quarter, Osha said, which makes him a bit uneasy. If that's the case, juxtaposed against a down AMD quarter, Intel would have to be gaining market share noticeably, he said, which doesn't mesh with his other findings. Any gains in market share Intel will realize from the Pentium IV processor won't come until later in the year, which indicate to Osha that Intel is "stuffing the channel," allowing inventory levels at its customers and contract manufacturers to build. AMD closed down $1.18, or 3.1%, at $23.95, on volume of 11.1 million shares, about 1.9 million more than the daily average. Meanwhile, Intel shares gained 3% to close at $27.49, on Nasdaq volume of 42.9 million shares, more than 14 million shy of the daily average. Also, Lehman Brothers' Dan Niles Wednesday cut his earnings estimate for the two competitors. Random access memory chip maker Micron Technology Inc. MU) shares were down as well Wednesday, and Osha pointed to building investor fears that Micron will miss its fiscal third-quarter targets, a concern he addressed in a Monday research report. Micron shares fell 3.1% to close at $36.84. American depository receipts of Infineon Technologies AG (IFX) dropped after it announced its third-quarter performance would be hit by a weak semiconductor market. Infineon makes chip systems for wireless and wired communications. Receipts ended at $25.40 in New York Stock Exchange trading, down 14.9%, on roughly the daily average volume. And Transmeta Corp., a maker of software-based microprocessors and products to give computers long battery life, was also down Wednesday. A filing with the Securities and Exchange Commission indicated International Business Machines Corp. (IBM) registered to sell 600,000 Transmeta shares on June 18. Transmeta closed off 7.4% at $12.60, on slightly-higher-than-average olume of 2.8 million shares. -By Maxwell Murphy; Dow Jones Newswires; 201-938-5173 maxwell.murphy@dowjones.com (END) DOW JONES NEWS 06-20-01 05:37 PM - - 05 37 PM EDT 06-20-01