David BurrowsATI TechnologiesATY.TODON'T BUYJan 12, 2005
Semi-conductor business in the last 2 weeks has been difficult. This one is winning in all their business areas, cell phones, laptops, etc. If you believe that HDTV is here and now, and will continue to grow, this company will be a big beneficiary. A great company, but right now with the weakness in the NASDQ & semi-conductors, there's risk.
Advanced Micro Devices (AMD-N) has made a bid to buy this company. $25 has been the top end of their range for the last 4/5 years, a major technical resistant level. If it got up through that, it would be a technical breakout situation. Doesn't know what the deal would mean for this company.
Facing some challenges, principally because of softening PC demand. Has done a pretty good job of moving away from PCs but this is still the dominant part of their operation. Outlook is uncertain.
A business he likes for the long-term. There is a number of new markets they are in such as X-Box 360 and flat panel high-definition TV. “Okay” value here and if you want to play the merger rumour, maybe you can get in and you probably won't get hurt.
If you own these stocks, you have to keep a very close eye on what is going on in the semiconductor sector as a whole. In the most recent pullback in the market, the semiconductor index bottomed, attempted a rally, and today failed and went to a lower low.
There is substantial concern about their solar side of the business. Involved with new technology with very innovative approach. The yield on the new production method isn’t panning out as expected. Ranks in the bottom 1% of the database.
Reasonably priced. Ranks 291 in his database. Some concerns about the number of PCs that are going to be sold. Microsoft's Vista looks like it will be delayed which could hurt. Lots of notebooks are being sold which is good. If you are convinced the market has bottomed than you can buy.
Stock is pulling back because there is no takeover. Graphic accelerator chips, their main product, are designed into a lot of computers. Sometimes they win, sometimes they lose.