Robert McWhirter
ATI Technologies
ATY-T
DON'T BUY
Jul 21, 2005
Continues to have a slugfest versus Nvidia (NVDA-Q) in the graphics acceleration side. Ranks in the bottom 10% of his database. Earnings have declined 83% of the most recent quarter and estimates have been chopped by 40% for the Aug '06 year.
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.
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.
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.
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.
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.