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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (27594)	12/21/2005 6:40:44 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95617

Downgrading Marvell Technology On News That Seagate Will Acquire Maxtor - BWS Financial Comments Wednesday Dec 21 2005 11:11:00 EST (RTTNews) - Wednesday, BWS Financial downgraded Marvell Technology Group Ltd (MRVL) shares. The brokerage noted that the stock is coming under selling pressure this morning after Seagate Technology (STX) announced that it would acquire Maxtor (MXO) for $1.9 billion in stock. The brokerage pointed out that Marvell has won key designs from Maxtor to be included in the 160GB platter and that the business from Maxtor is expected to increase in 2006 with the release of the hard disk. BWS Financial said that the risk that it sees with the Seagate acquisition is that Seagate does not do much business with Marvell. The brokerage believes that there is a great possibility that Seagate is buying Maxtor for mostly removing supply from inventory. If this is the case, the brokerage said then it would consider the news a negative for Marvell in the future. Further, the brokerage said that the Seagate/ Maxtor news is a good time to take profits from the recent rally in the shares. BWS Financial said it would expect Marvell shares to return to their upward trend with the start of 2006, but said that it sees the stock trading above $57 early on as overvalued requiring the company to post better than expected results for fiscal first quarter to warrant a price near or above $60. In all, the brokerage believes that a risk of disruption in the growth rate could lead to the shares receiving a lower valuation from the market. Accordingly, the brokerage lowered its rating on the shares of Marvell to Buy from Strong Buy, while maintaining its $57 price target for the stock. MRVL is currently losing $3.41 to trade at $56.95.