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Technology Stocks : Triquint Semiconductor (TQNT) -- Ignore unavailable to you. Want to Upgrade?

To: slob who wrote (334)	11/26/1997 5:38:00 PM
From: Bob Thompson	Read Replies (2) \| Respond to of 995

FYI everyone: Piper Jaffray reiterated a strong buy rating on TQNT yesterday for aggressive portfolios. Their outlook for the company is to trade between $50-$60/share in the next 12-24 months. They believe TQNT can sustain 30-40 percent long term growth and that recent pullbacks in the stock represent an excellent opportunity for aggressive investors. They cite three reasons for recent weakness in price: a) concerns over the impact of S.E. Asia financial crisis on the demand for wireless comm. equipment b) recent (11/24/97) announcement by VLSI that it had seen some "slight softness" in its 1Q bookings for wireless comm. chips c) general volatility in semi's and tech stocks and particularly GaAs companies. excerpt: "With respect to the first point regarding the S.E. Asian crisis, we think that should there be a significant global economic slowdown or recession as a fallout from this crisis, it could affect demand for all types of goods other than perhaps consumer staples. We do not, at this poiint, believe the crisis will result in a global recession. It may slow global growth; we expect perhaps 0.5%-1.0% in the U.S. We still believe the long-term growth potential for communications remains strong regardless of the strength of the global economy; communication is vital, almost a 'staple' in a sense, and communications technology will continue to advance. Moreover, TQNT has very little business exposure now to S.E. Asia. We extimate TQNT's exposure at 4%-5% of sales with the vast bulk of this (80%) in Japan. With respect to the VLSI announcement, we think the market is overreacting and painting everyone with the same brush. The 'problem' for VLSI is the association with Ericsson on present GSM-based products. TQNT will be making six power amps for Ericsson next year, two of which will be GSM, but for new, not existing, products. We believe investors can take advantage of this volatility by focusing on beaten down stocks with good long-term prospects, such as TQNT."

To: slob who wrote (334)	11/29/1997 2:00:00 AM
From: Rex Dwyer	Read Replies (1) \| Respond to of 995

Hi Slob, "any ideas on when we hit bottom?" I am not a technical analysis expert, but I would say that their $0.14 earned last Q should keep the share price above $14. However, this assumes that the company does not announce that the profits may go even lower in the future. So, I am buying now at $22 5/8 and at $21. If it gets down in the $15 or lower range I will try to find cash to buy more. I will probably not buy more unless I sell one of my other holdings. And, of course, never put too much money in one stock in case we have really screwed up. I would not bet that the price will go down to $14 before it goes up to $30 again. I think it has a higher chance of going up than down. But the stock is in the penalty box right now. It may take time before Wall Street feels safe with the company. They have plenty of capacity. So if they do get some big design wins, the profitability should shoot up as the gross margins increase. Rex