To: Return to Sender who wrote (14083 ) 3/18/2004 2:20:24 PM From: Donald Wennerstrom Read Replies (1) | Respond to Quite a divergence of opinion - one of them must be full of you know what - do you bank on the investment/brokerage house or the top financial newspaper in the world to give you good advice. It's enough to drive a poor investor in to drink!;) With advice like this on a daily basis, it's no wonder we have a schizophrenic market.<<7:30AM Morgan Stanley upgrades Semi and Semi Equipment industries : Morgan Stanley raises their view of the Semiconductors industry to Attractive from In-Line, as they believe the industry is in the sweet spot of the cycle, and although valuations are relatively high, they believe that solid increases in earnings power and positive surprise potential should support higher stock prices; firm also points out that semi stocks generally outperform the stock mkt when interest rates rise, which should occur in 2005. Firm also raises their view of the Semi Capital Equipment industry to Attractive from In-Line, citing a combination of positive news flow on capital spending additions, better demand for semis as volume and pricing trends improve, a better economic backdrop, and a positive Q1 earnings season as near-term catalysts for the stocks. >> <<7:11AM WSJ article suggests recent move in semi stocks might provide chance to "lighten up" : The WSJ's column "Ahead of the Tape" discusses semiconductor sector that peaked out in mid-Jan. and has been slipping since. The article notes that in the past two days, investors have been getting into the sector. The thinking is that anything down must be a bargain. However, the article suggests the recent move could be providing a chance to lighten up. No one wants to believe that the cycle has maxed out. According to the article, the time to sell semis is when all the co's are reporting good news, when margins are high and when you can't swing a mouse without hitting a bullish analyst. National Semiconductor had a strong earnings report and outlook last week, Texas Instruments had an upbeat forecast, but the stocks didn't respond well. This raises some speculation that investors are anticipating some difficulty ahead. Moreover, there have been pockets of mediocre news. Agere, a maker of communications chips, warned that its current quarterly earnings would disappoint.>>
