Zarlink (ZL.TO)

DON'T BUY
Have given up on this company. Very disappointing situation and very difficult to turn around. Press release in the spring had no guidance, no earnings projections and no CEO. Sold all his holdings.
DON'T BUY
Their existing strategy is not working. Don't have enough new products to drive the growth. Very tied to the communications equipment business. Very cheap and has cash on the balance sheet but doesn't see it going anywhere.
DON'T BUY
The semiconductor outlook is slightly worse than it's been. The book to bill ratio the last couple of month isn't great. There's a lot of mixed feelings that there's only 12 to 18 months left in the cycle and then we're going into a downturn. Zarlink's drop is not because of the industry, but their own problems. Need a couple of good quarters.
DON'T BUY
Doesn't have many earnings. His model price is $0.75.
TOP PICK
A lot of the semis are in nervous territory. Very economy sensitive. Have a stop loss at $1.90.
SELL
The semi-conductor group had a bit of a rally over the last couple of weeks, but would only add the strongest company in the group. Some risk as the NASDAQ has been underperforming.
DON'T BUY
Semiconductors in general have not been doing particularily well and Zarlink's have done even worse. Very speculative.
HOLD
Looks like it's trying to wedge, so it may break out of the wedge. It's now or never. Wouldn't buy any more.
DON'T BUY
Model price is exactly where it stands now. If it doesn't hold at this level, can see it hitting $2.25.
HOLD
Tax loss selling has dropped its price. Did most of what they said they would, i.e. move from a loss to a break even and then drive on. Got to break even, but last quarter was slightly disappointing. Macro overview on semi-conducters is that the cycle may be coming to an end.
DON'T BUY
Likes to buy companies that make money and this one doesn't. The prospects of them making money seems to be cloudy. Doesn't see any visibility of earnings.
DON'T BUY
Reported numbers today that looked like a miss because of weaker end markets and the weaker US$. Could be a preview of some of the other Canadian tech companies getting impacted by the $.
SELL
Expects tax-loss selling. Doesn't see it recovering any time soon.
BUY
Have sales, cash and a respectable balance sheet. Decent products. Very cheap semiconductor stock, but not a fan of semiconductors. A lot of cash has to go for R&D. Big upside if they end up with right products and economy is good.
DON'T BUY
Forming a base, but bases tend to take a long time to form. Not a fan of the sector.
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