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Technology Stocks : Semtech -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Bond who wrote (667)	1/2/1998 3:24:00 AM
From: Jeff Bond	Respond to of 886

12/31/97 Pull Survivors from the Tech Wreckage. Dust off the damage done to oversold stocks like Level One and Analog Devices, and you'll find bargains in the rough. By Eric Dubin portion of article follows: >>"If one were to look at semiconductor industry profitability," says Carl Johnson, president of the semiconductor-market research firm INFRASTRUCTURE, "it would be hard to argue against a stance saying this is a continuation of the '96 downturn." But unit growth rates clearly indicate that the semiconductor industry is witnessing reasonably strong demand despite a difficult pricing environment, Johnson says. Investors have time to bone up on fundamentals -- and especially time to build a shopping list for use later in the year. Cowen & Co.'s head semiconductor analyst, Drew Peck, falls into this camp, favoring National Semiconductor (NSM), Analog Devices (ADI) and other companies in the analog segment of the semiconductor industry, where the industry's overcapcity is less of an issue. Merrill Lynch chip analyst Tom Kurlak is also relatively bullish on ADI, but he underscores the tendency for companies to shift manufacturing capacity toward more profitable device markets. He fears this search for higher margins could easily pressure digital-signal processor sales at ADI and Texas Instruments (TXN), particularly if end markets weaken. Years of systems-level expertise, new product cycles in both ATM and Ethernet semiconductor markets and high gross margins make PMC Sierra an outstanding value in the $20s despite the shares' high volatility."<< The "Mouse That Roared" gets absolutely no respect, and very little press. The article speaks well for SMTC's prospects, and confirms that analog semiconductor companies are not as much associated with the misery as they have been accused. Todd, I'll bet 120% is a reasonable figure, after all is said and done Regards, JB P.S. Everyone prepared for the upcoming case of double vision?