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

To: Donald Wennerstrom who wrote (50501)	12/23/2010 11:42:56 AM
From: Donald Wennerstrom	1 Recommendation Respond to of 95572

Dec 23, 2010 10:09 AM Micron: Bulls See DRAM Bottoming, NAND Opportunities Posted by Tiernan Ray Shares of Micron Technology (MU) are down 26 cents, or 3%, at $8.02, after the company yesterday missed fiscal Q1 estimates, but management on the conference call said it looked like weakness in the DRAM market was nearing bottom. The company said that weakness in memory chips was the result of sluggish demand for PCs, and that on the bright side, companies were not pouring lots of investment into production capacity, which meant the industry could resolve excess supply in coming months. John Pitzer, Credit Suisse: Reiterates an Outperform rating on the stock, while lowering his price target to $10 from $15. Pitzer argues that some of the weakness in the business is the result of investments Micron had to make this year, including its IM Flash Singapore, or IMFS, joint venture to develop NAND flash memory chips. He says slowness ate the company’s Inotera DRAM joint venture with Taiwan’s Nanya had delayed the expected payoff in memory chips for server computers. But these “headwinds” could become “tailwinds” in 2011, Pitzer believes. He notes there seems to be little downside for Micron with a book value of $7.98 per share. Hans Mosesmann, Raymond James: Reiterates a Strong Buy recommendation and an $18 price target. The revenue number last night was actually in line with Mosesmann’s estimate, but the gross profit margin of $23.3% was lower than the $26.5% he’d been modeling. “as the dust settles in the next several days and weeks we strongly believe that, at a minimum, the cyclical opportunity (DRAMs)will become increasingly evident; and by the CES show in Las Vegas in early January the tablet/SSD theme will be manifestly evident.” Daniel Berenbaum, Auriga Securities: Reiterates a Buy recommendation and an $11 price target. There were no “big surprises” in the quarter, in his view. Like Pitzer, he sees delays at Inotera now behind the company. Gross margin was lower because costs for NAND production did not come down as quickly as expected, he notes. Berenbaum argues the estimates have been too bullish and are still too bullish for Q2. Indeed, the current conensus on EPS is 19 cents. Berenbaum believes it will be more like breakeven, “or a little below.”

To: Donald Wennerstrom who wrote (50501)	3/21/2011 12:29:35 PM
From: Kirk ©	2 Recommendations Read Replies (1) \| Respond to of 95572

Interesting... Is Verigy using ATE to get a better deal (less premium for merger/takeover) from LTXC? It seems "odd" for a company to have an IPO at $15, turn profitable and grow market share then get taken out for $15 in cash.... unless the better deal was jobs and stock options offered to the insiders on the Board or they will use this to get a better offer from LTXC. Verigy Board of Directors Determines That Advantest Proposal Is Superior to LTX-Credence Merger finance.yahoo.com Press Release Source: Verigy, Ltd. On Monday March 21, 2011, 8:00 am EDT CUPERTINO, CA--(Marketwire - 03/21/11) - Verigy Ltd. (NASDAQ:VRGY - News) today announced that its Board of Directors, after consultation with its independent financial and legal advisors, has unanimously determined that a proposal from Advantest Corporation (NYSE:ATE - News) to acquire all of the outstanding Verigy ordinary shares for $15.00 per share in cash ("the Advantest proposal"), on the terms and conditions set forth in a definitive implementation agreement proposed by Advantest, constitutes a "Superior Offer" within the meaning of the definitive merger agreement between Verigy and LTX-Credence Corporation (NASDAQ:LTXC - News) previously announced on November 18, 2010. Verigy has notified LTX-Credence that the Verigy board of directors intends to withdraw its recommendation in favor of the pending merger transaction between Verigy and LTX-Credence and intends to recommend that Verigy stockholders vote against the issuance of Verigy ordinary shares in connection with the proposed merger with LTX-Credence. In accordance with the terms of the LTX-Credence merger agreement, LTX-Credence has until the close of business on March 25, 2011 to deliver a proposal to Verigy that would cause the Advantest proposal to cease to constitute a "Superior Offer." There is no assurance that the proposed transaction with Advantest will be completed. Verigy does not have a unilateral right to terminate the LTX-Credence merger agreement in order to accept the Advantest proposal and enter into a definitive agreement with Advantest, even if LTX-Credence declines to make a proposal on or prior to the close of business on March 25, 2011 and the Verigy board thereafter formally withdraws its recommendation in favor of the proposed merger transaction between Verigy and LTX-Credence. Morgan Stanley is acting as financial advisor to Verigy. Wilson Sonsini Goodrich & Rosati is acting as Verigy's U.S. legal counsel and Allen & Gledhill is acting as Verigy's Singapore counsel.