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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Bulldozer who wrote (2262)	11/27/1998 11:54:00 AM
From: VFD	Read Replies (1) \| Respond to of 3818

Partial article from the latest issue of WORTH magazine: Another strategy neatly blends next year's rebounding chip story with the internet theme that powered huge 1998 gains for investors who bought the likes of Amazon.com and real networks. I allows investors to back additional internet growth in 1999 without adding to their high-priced holdings of search-engine companies such as yahoo or, for that matter, internet equipment providers such as cisco and lucent. The strategy: buy shares of firms that supply semiconductors to the equipment suppliers. When you invest in these internet chip makers, you do not have to make a bet on which internet companies will gather the most traffic or earn the biggest profits. You just have to be willing to bet the internet will keep growing. I that happens -wich seems a safe bet- it will be matched by the growth of wide area networks, or wans, which make possible internet communications. Jeremey Donovan, an analyst with dataquest, figures the market for wan semiconductors will grow 23.6 percent annually through 2002, to 1.3 billion from 443 million. "people need faster pipes to send information," he says. "that is going to benefit companies that provide the infrastructure for those pipes." Such companies include applied micro circuits , vitesse semiconductor, and PMC Sierra. All are worth a look, but we heard the most goods news about PMC Sierra. The firm is the top maker of ATM, integrated circuits chips that package information for sending over wans for network-equipment firms such as cisco, lucent and ascend. Pmc's sales should grow some 30 percent annually for the next 5 years, powered by the firm's core data-networking business, which Kevin Landis, manager of the firsthand technology innovators fund, estimates is growing 10 percent every 90 days. Analyst Elias Moosa at banc-boston robertson stephens figures PMCS earnings could rise 15 percent to 1.35 a share. Meanwhile, the stock recently traded well below its may high of 51. Landis thinks the share could easily hit 60 in 1999.

To: Bulldozer who wrote (2262)	11/27/1998 5:16:00 PM
From: tech101	Read Replies (2) \| Respond to of 3818

Good point, Bulldozer: ATM is booming. Silicon is ubiquitous and … becoming commodity. That's why AMCC, TXCC, LEVL, IDTI, COMS, BRCM, LSI, DS, TI, CY, ADI, LTCC… are trying to do the same things, and many more want to get into the market if they have not yet. PMCS took good advantage of their unique position as the only semiconductor member of SATURN, and beat the competitions in ATM PHY for quite some time. But remember the simple truth: where there is easy money, where are the competitions. The name of the game is to find the next crown jewel, just like PMCS used to be and God bless it can continue to do so.