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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (26839)	2/19/2007 5:20:27 AM
From: delta99	Read Replies (1) \| Respond to of 37387

Regarding Semis: yes I agree semi companies are largely cyclical in nature. Right now I'm very bullish on the world economy so I think semis will do well. Only thing is, the competition is very fierce in these areas, since chips are really a commodity that is being manufactured. I think the margins will be squeezed as time passes, much the way most LCD panel manufacturers have been over the last few years. Of course companies that have a significant competitive advantage (i.e. Intel, or a company like OVTI) in terms of differentiation are a different story. AMD may also be considered a value play at this time since it has plummeted so much recently. Regarding Fiberoptics: There's no question that the sector has turned, even one of my old biggest disasters from years ago (FTGX) seems to be turning around. My main concern with fiberoptics companies is that bandwidth is still cheap and there isn't a whole lot of room for companies to leverage their product pricewise. There are still a lot of unused "dead lines" that are not in use to the massive oversupply from the tech bubble. Bandwidth too, has become a commodity and so the profit margins will only decline in the future. So from a purely technical point of view the sector has turned and I'm sure there are a few gems out there. But the sector as a whole I do not find particularly appealing. If I wanted to play the sector, I would be interested in looking for companies that are being subcontracted to put fiberoptic lines in place. I am sure that these types of companies are in high demand since some of the major communications companies (which ones I forget) are making major capital investments to fight off the dominance of the cable companies. Without the fiberoptics the "old school" telephone line companies are dead in the water. Just trying to make whatever meager contributions I can to the board, Rob