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

To: Donald Wennerstrom who wrote (40101)	9/8/2008 2:36:23 PM
From: Donald Wennerstrom	1 Recommendation Read Replies (1) \| Respond to of 95622

Nvidia Downgraded To Sell On Growth, Competition Worries September 08, 2008: 12:56 PM EST SAN FRANCISCO (Dow Jones) -- Shares of Nvidia Corp. fell Monday after UBS downgraded the chipmaker's stock to sell on concerns about its long-term growth and mounting competition from Advanced Micro Devices and Intel Corp. Nvidia (NVDA) was down 3.7% at $11.24 in afternoon trading of more than 17 million shares. UBS also lowered its price target to $11. Nvidia had been one of the hot stocks of the tech sector last year, but it has seen its shares fall more than 60% since the beginning of the year. Last month, the company reported a huge second-quarter net loss, weighed down by a $196 million charge related to production glitch involving a weak die/ packaging material set in specific notebook systems. UBS said Santa Clara, Calif.-based Nvidia's "longer-term growth story will be more challenged," citing more aggressive initiatives by Intel (INTC) and AMD ( AMD) to push into the graphics-chip market where Nvidia is dominant. "AMD's discrete graphics chips are likely to remain competitive with historical gross margins 10 points below Nvidia," UBS wrote in a research note. "Intel's future [graphics processor unit], Larrabee, is a credible effort that could impact Nvidia's high-end desktop GPUs and professional business." The UBS note added, "Even as we may be overly bearish as to Nvdia's long-term competitiveness and growth opportunity given its deep technical strength and industry leadership, we believe the stock offers very limited upside near-term." money.cnn.com

To: Donald Wennerstrom who wrote (40101)	9/8/2008 3:44:58 PM
From: The Ox	Read Replies (3) \| Respond to of 95622

We are raising our target price by $11 to $24 based on an enterprise value-to-sales ratio of 1.0 This shows just how f'd up the general analyst community is when they look at semi companies. If someone wants to buy the company, the analysts suggest that the company is worth 120% of their "price target" based on enterprise value! If the stock is based on its short term earnings potential then stock is only worth $11. One minute, the stock is only "worth" $11 to the analyst...but if someone comes along and thinks about buying the company...well they better shell out $24/share. Disgusting... but not surprising. jmo TO