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Industry Calls Archives: Semiconductors - February 2001 |
| Semiconductors
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Wednesday, February 28, 2001:
Buy. The semiconductor sector, which has held
up relatively well since its late November
lows, has dropped more than 25% since our
tech-market sell signal on January 17 and
about 30% from its recent highs on January 31
to return to within about
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2-5% of those strong November support levels. This,
combined with the bullish signals that we have
on all but one of the stocks we follow in this
industry (more than two-thirds of which have
come within the last three days), indicates that
the sector will likely be headed up shortly.
Additionally, this industry looks a lot stronger
than most other high tech areas on a value basis
as well. The P/E's of many companies near
or below 20, and a few companies even have P/E's
that are at or near single digits, while
maintaining 15-20% expected growth. In
particular, we have fairly strong buys on
Advanced Micro Devices (AMD-21+), Cypress
Semiconductor (CY-19+), National Semiconductor
(NSM-20+), and Novellus Systems (NVLS-38+) right
now, though we also like Lam Research (LRCX-20+)
over the medium-to-long term. We would
caution, however, that if the sector does break
down more than 3-5% below its November lows (we
do not see this as likely), it could be headed
lower and positions should be stopped out.
· March
2001
· January
2001
·
December
2000
·
November
2000
·
October
2000
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