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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: DlphcOracl who wrote (36161)	9/27/2001 2:08:24 PM
From: puborectalis	Respond to of 37746

Texas Instruments Falls as Goldman Cuts Chips Estimates By TSC Staff 09/27/2001 01:11 PM EDT Texas Instruments (TXN:NYSE - news - commentary - research) was down 8% in early afternoon after Goldman Sachs cut earnings and revenue estimates for the communications chip sector to match the perceived impact of the Sept. 11 attacks. In a research note, Goldman said "hits to consumer and corporate confidence clearly suggest ratcheting down assumptions for the next few quarters.'' National Semiconductor (NSM:NYSE - news - commentary - research) was one of the biggest percentage losers on Goldman's list, down 13% in early afternoon. Other companies on the list include Analog Devices (ADI:NYSE - news - commentary - research), Altera (ALTR:Nasdaq - news - commentary - research), and LSI Logic (LSI:NYSE - news - commentary - research). Intel (INTC:Nasdaq - news - commentary - research) wasn't mentioned in the list, but was nonetheless suffering this afternoon, down 5.7%, while Applied Micro Circuits (AMCC:Nasdaq - news - commentary - research) was down 8.4%.

To: DlphcOracl who wrote (36161)	9/27/2001 2:50:49 PM
From: KevinThompson	Respond to of 37746

Actually, the point I was making is that even "after this week's haircut", they are not where they need to be to be called undervalued. I believe their PE's going forward, using earnings estimates of the next two quarters, puts them very overvalued. In fact, before today, they are about 50% overvalued if you use PE of 20 going forward as a reasonable valuation. Therefore, I see another 30% or so stock price slide before any sustaining uptrend can start. (Unless there is a return to "the bubble method" of valuations.) Best Regards, KevinT