Zarlink (ZL.TO)

DON'T BUY
There are some neat niches in the semiconductor market, but consistency of execution and growth in their market just has not been there.
TOP PICK
They have been in the game a long time. Always put money into R&D every year. Always seem to have new products coming out.
TOP PICK
Have about $160 million in revenue. Semiconductor field is a tough one. Crispy clear balance sheet. No long-term debt. Some insider buying.
DON'T BUY
Had a big sell off in 2002 with the rest of the tech stocks and since then it has been in the base building. This will go on until it has a resolution of the base building and the downward trend line.
DON'T BUY
Expecting a slowdown in the general semiconductor market. Ranks 313 which is neutral in the model. Earnings are expected to grow by about 40%.
DON'T BUY
A cyclical industry. Semiconductors is a very competitive industry. Profit of $.55 for the year and a P/E of 4.4 but the market doesn’t thin next year’s will be nearly as good..
DON'T BUY
Good balance sheet and $.95 in cash. Hard to evaluate any long-term growth here. Also can’t see any clear short-term opportunities.
BUY
Had a big drop from $2.75 to about $2.36. Consolidating now indicating the news is being digested. Very jumpy, so it is hard to do technical analysis on it. You can buy the stock, but you have to put a tight stop on it at around $2.15.
DON'T BUY
Through the towel in quite a while ago on the stock and wouldn't be interested in owning it.
DON'T BUY
Has been a very disappointing stock over the last couple of years. Technically, it is making a bit of a bottom and is trying to break out. If the earnings are good, the stock can run and can get up into the $3.40 resistance area. Speculative.
BUY
Management has done a very good job in turning this company around. Have been shedding some assets that didn't offer great growth prospects.
BUY
Ranks 223 in his model. Performance over the last couple of months have been a disappointment. Recently had a positive earnings surprise of 3%. Earnings are expected to grow from $0.03 to $0.11 in 07. Feels there is good opportunity for the company.
BUY ON WEAKNESS
The uptrend was broken in April indicating a bear. Had you’re A, B, C down and had a higher low in September. Now looks like it's on wave 3.
HOLD
Interesting turnaround. Management is doing all the right things. The problem is they are trying to orchestrate the turnaround in what is turning out to be a very bad tech tape with a lot of tech companies being under pressure. Lots of cash on the balance sheet and they are generating cash.
DON'T BUY
If you look at their history, it is not a proven management team. Haven’t proved that they can execute consistently.
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