Zarlink (ZL.TO)

DON'T BUY
The semiconductor sector peaked out in the early part of January. A sector that you have to use as a trade. The stock was never able to get into the rallies.
BUY
Reported good numbers and gave guidance for revenues increasing good entry point. 11%.
PAST TOP PICK
(A top pick Oct 2/03. Down 1.5%.) Sold at. Wanted a stock that participated in the Tech rally but it didn't pan out.
DON'T BUY
Prefers over Tundra. Zarlink is recovering as well but further back along the curve and hasn't had the rise yet. In the short term, probably not going anywhere.
DON'T BUY
Thinks it's ahead of itself. Buy on rumor and sell on news. A good chance the stock will drop, regardless of the earnings.
DON'T BUY
Had a huge selloff in 2002 and then started to do some base building. The base building is not yet complete.
WAIT
Have a few products that are starting to come on. Have their cost structure under control. Want to see the numbers on their next quarter.
DON'T BUY
Finally showing signs of having their revenues in line with their costs. Have a lot of products, a few really good but many so-so. There are better ways to play the chip business.
BUY
Looks very cheap. Finally turned around where it has reached the breakeven point. New products are probably going to show some growth. High risk/high reward.
BUY
Semiconductor business is coming back.
WEAK BUY
A good company. Very diverse product line. Has been in restructure mode for the last year. There are indications that they can turn it around. 2.6 X sales.
PAST TOP PICK
(A top pick Dec 8/03. Up 41%.) Still likes and expects to see higher highs. Have been downsizing.
DON'T BUY
Would prefer Taiwan Semiconductor or ATI.
TRADE
Have some good products. Good relationships with Nokia and Nortel. Volatile.
DON'T BUY
A survivor. Doesn't think the future for the chip industry is that terrific. It increasingly becomes commodized and the cost of building new fabrication facilities keeps going through the roof and becomes a volume game.
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