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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (37980)	8/9/2002 2:23:29 PM
From: Johnny Canuck	Respond to of 69262

Jim, Longer term the decline in price is a positive as long as margins do not go negative. 70 percent of flat panel displays are now sold to business customers. The bigger market is the general consumer market. For FPD to penetrate the consumer market 17 inch FPD display need to fall below $500 in price. Every knows it is a low margin business. It is the volume that matters. It is a little like RAM memory. If they can get the volume companies become cash flow machines. When business is weak, it is just pages and pages of red ink. The display chip companies are now that mature yet, but they have some of those characteristics. Right now GNSS is profitable, but it is will trade with the market till christmas when new capacitiy comes on line and the market gets a better look at end user demand. Here is some interesting commentary on how the US markets are being perceive abroad. ************************* Daily Market Headliners Friday, August 09, 2002 This publication is a market commentary not to be construed as a source of buy or sell recommendations. America’s Image Abroad The recent scandals in corporate America are affecting more than investors’ portfolios. During a speech in Hannover this week, German Chancellor Gerhardt Schröder put it very bluntly: "The time has come to re-examine whether the way America runs its economy should continue to serve as a model for the rest of the world. The plundering of the little people’ in the United States by a manager class which is shamelessly enriching itself is not the German way." CANADIAN MARKETS Canadian stocks rose for the first day in five, led by oil producers, after U.S. President Bush said the U.S. is not in a hurry to attack Iraq. Suncor (SU) rose $2.18 to $27.40, EnCana (ECA) added $1.15 to 45.50, and Compton Petroleum (CMT) rose 20 cents to $3.80. In the mining sector, SouthernEra Resources (SUF) rose 55 cents to 5.25 after the company said South Africa’s government awarded the company properties containing platinum that it expects to begin mining soon. Molson (MOL.A) rose $1.94 to $30.19 after Brazil won loans from the IMF, easing concern the beer maker will be hurt by further declines in the country’s currency. The Street had been concerned that a drop in Brazil’s real would make revenue Molson generates worth less. The black mark on the day was CAE (CAE), which fell $1.12 to $7.76 and brought its two-day decline to 22 percent. Analysts at six securities firms cut their ratings or target prices for the shares after the pilot-training company said on Wednesday that it needs a rebound in airline spending to meet sales and profit forecasts. UNITED STATES MARKETS U.S. stocks surged, pushing the Dow Jones and the S&P 500 to their biggest three-day gains in almost 15 years. Banks led the advance after the IMF agreed to lend Brazil $30 billion, easing concern the country will default. Citigroup (C), which has $9.3 billion in loans and other commitments to Brazil, rose $2.38 to $33.90. J.P. Morgan JPM), which has $600 million in loans, advanced $2.34 to $26.38. Bank of America (BAC) rose $3.14 to $68.39 and FleetBoston Financial (FBF) gained $1.71 to $23.62. Drug shares climbed as investors snapped up companies whose earnings are less dependent on the economic recovery. Pfizer (PFE) rose $1.49 to $33.16, Johnson & Johnson (JNJ) climbed $2.06 to $54.57, and Wyeth WYE) advanced $2.65 to $42.00. In the tech sector, Microsoft (MSFT) rose $1.82 to $48.91 after the company settled complaints by U.S. regulators that Passport, its Internet sign-on system, did not protect private information a consumer provides to authenticate identity when making on-line purchases. Microsoft agreed to improve security and submit to audit every two years. Finally, Palm (PALM) slid 16 cents to 82 cents after S&P announced it would replace the PDA maker in its index with Monsanto (MON), a maker of agricultural products, after trading ends next Tuesday. Monsanto rose $1.39 to $17.34. CANADIAN EQUITIES OF INTEREST (Listed Alphabetically by Symbol) ATI Technologies (ATY : TSX : $9.85) Net Change: 0.53, % Change: 5.69%, Volume: 899,800 Whiplash smile, early morning frowns turned to late day grins. Early morning selling took shares of ATI as low as $8.98 before a late day rally pushed shares higher to close at $9.85. Reports of softening PC industry fundamentals and cutthroat competition have hurt both ATI and Nivida (NVDA) over the past week. ATI has aggressively been cutting pricing on Radeon 8500’s, in an effort to clear channel inventory prior to availability of its Radeon 9000 and 9700 new GPUs. National Bank Financial maintains a FOCUS BUY, with a 12-month target of $19.00. RBC Capital Markets continues at SECTOR PERFORM, with a 12-month target of US$9.00. Scotia Capital maintains a BUY, with a 12-month target of $13.00.