Joe Osha
Joe Osha
analog building buy deal decision despite fits objective presence ratings rich somewhat specialist stated texas
Texas Instruments' decision to buy analog specialist Burr-Brown fits well with the company's stated objective of building its presence in the analog business. Despite the somewhat rich valuation for the deal, we think that the deal makes sense for TI. We reiterate our intermediate-term and long-term buy ratings for the stock.
buyers company deeply hands intel loss neutral past rating staying stock strong suffers until
For now, we're staying with the neutral intermediate-term rating on AMD's stock until we see how the company weathers the Northwood launch. We are still long-term strong buyers of the stock -- even if AMD suffers at the hands of Northwood it will not plunge as deeply into loss as it has during past Intel offensives.
checks generally line loaded market normal pc suggesting supports third tracking update
Intel's mid-quarter update was generally in line with our expectations, which supports our checks suggesting that the PC market is tracking normal seasonality in the back-end loaded third quarter.
momentum seen shift
I don't think I've ever seen competitive momentum shift like this, so congratulations.
effect
It's not going to effect the company's position.
advise beginning below buying concerns correction globally investors march stocks thesis
The concerns that underpinned our mid-cycle correction thesis are beginning to dissipate, and semiconductor stocks globally are well below their March highs. We would advise investors to begin buying semiconductors more aggressively.
appears building data dominant inventory less points question result stocks whether worries
One of the dominant worries here is the question of whether we're going to see any building of inventory that will result in 1Q weakening. But as the data points have rolled in, that appears to be less and less the case. That's pretty important, and you can see it, in particular, in some of the communications stocks that are moving.
although began believe evidence hard highs hitting late next prices sector stock strongly support
It is very hard to find any evidence of a real end to the upturn that began in late 1998. Although we see little to support semiconductor stock prices during the next two months, we strongly believe that the sector will be hitting new highs before the end of the year.
earnings estimate expensive growth intel prospects relative
At 27 times our 2003 earnings estimate Intel is still expensive relative to its growth prospects and its own history.
consumer discrete graphics holidays processing push sales selling suffer unit
Without the consumer Vista push for the 2006 holidays selling season, we think that discrete graphics processing unit sales could suffer slightly.
driven fact growth intel market positive pushing reason stock
The reason I am positive on the stock right now is the fact they are pushing into servers, workstations -- the things that are being driven by growth in the Internet. That is a big market that Intel can dominate, I think, pretty quickly.
appears company difficulty earnings growth high imagining investor level moving percent raise rate recovery stock sufficient
Valuation for the stock appears significantly high for a company with a sustainable earnings growth rate of 10 percent to 15 percent. We have difficulty imagining any second-half recovery that could raise earnings, and investor expectations, to a level sufficient to keep the stock moving up.
estimates march points raising strength
We're not raising our estimates for the March quarter, but the strength at Motorola points to the possibility of upside.
added although capacity change companies fourth happening less negative past rate terms themselves worst
What we see happening is a bottoming to the rate of change in the semiconductor business, which has been negative and less capacity being added by the fourth quarter, which is also good. So, although companies themselves are still very conservative we think that the worst is past in terms of the downturn here.