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Technology Stocks : FSII - The Worst is Over? -- Ignore unavailable to you. Want to Upgrade?

To: Kent Sarikaya who wrote (2029)	6/23/1998 2:57:00 AM
From: Kent Sarikaya	Read Replies (1) \| Respond to of 2754

Some good general news: Chips looking up Analysts say turnaround is underway By Binti T. Harvey, CBS MarketWatch Last Update:04:20 PM June 22, 1998 Also see Tech Report NEW YORK (CBS.MW) -- Semiconductor issues surged Monday amid increasing confidence that the group has weathered the worst. The Philadelphia Semiconductor Index climbed 4.3 percent as investors scurried to buy the battered stocks in anticipation of a turnaround. "They're cheap!" exclaimed Ken Perlman, chip analyst for CIBC Oppenheimer. "These stocks have hit the bottom of their trading ranges, and people are realizing that they can only go down for so long before heading back up." The semiconductor index has borne the brunt of concerns about PC industry softness and Asian economic weakness, losing about a quarter of its value since the beginning of the year. Many issues have touched 52-week lows in the past two weeks, sparking optimism that the worst has passed. Perlman expects to see monthly billing patterns for the industry, which have been declining for the past five months, flatten out over the next several months as fundamentals start to firm. "I don't expect a sharp turnaround, and orders will probably just level off for a time, but when you're at the bottom, any sequential improvement is enough to lift stock prices," Perlman said. Richard Dickson, chief technical analyst for Scott & Stringfellow, says technical charts support the view that the industry is poised to turn around. Dickson recommended short-term buying on shares of Intel Corp. (INTC). "I think we'll see an upswing over the next three to six weeks," Dickson said. "Longer-term I'm less sanguine, but I still don't expect a lot of decline." "I think after this initial rally we'll see some base-building through the end of the summer, early fall, but the worst is behind us," said Dickson. "The question is when we'll see a sustained rally.