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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Big who wrote (32194)	2/22/2002 10:46:53 AM
From: orkrious	Respond to of 99280

XLNX losing it on good news...we be going lower Here's Cramer's take on XLNX. He's rights. subscribers only thestreet.com Amazing. Like clockwork, the tech bulls rush to embrace Xilinx (XLNX:Nasdaq - news - commentary - research - analysis) and make people feel better about tech than they should. Consider this: Xilinx sells to companies like Cisco (CSCO:Nasdaq - news - commentary - research - analysis). Cisco is telling people that business downticked recently. Xilinx's orders came when Cisco was trying to rebuild inventory, inventory that it turns out it might not need. In other words, Xilinx is playing catch-up to Cisco, yet Cisco has already started back down! This kind of upgrading on the heels of old news is so typical of tech analysts that they really should be ashamed of themselves. All they are doing is prolonging the inevitable. Does that mean you should short Xilinx? No, it means you can use the faux strength generated by these upgrades -- like the faux strength created by the upgrades on Applied Materials (AMAT:Nasdaq - news - commentary - research - analysis) that were totally unnecessary and wrong -- to sell. Remember how angry people were with me when I said Applied Materials should be sold into the strength? Look at it now. Down five from when it went up on the bogus strength of those upgrades. Today, PMC-Sierra (PMCS:Nasdaq - news - commentary - research - analysis), Applied Micro Circuits (AMCC:Nasdaq - news - commentary - research - analysis), Xilinx and Altera (ALTR:Nasdaq - news - commentary - research - analysis) will all go up the way Applied Materials did. And you should sell them all. They can go up, but they can't stay up in this environment.