While many of the stocks in this group are already down by 50 percent over the past several weeks, we believe that inventory concerns, coupled with telecom service-provider capital-spending concerns, will weigh on the group for the next one to two quarters. We note that the group in aggregate still has the highest valuations in the semiconductor business, even after the recent decline.
More Quotes from Joe Osha:
Given the challenges Intel faces currently with its business model, we think the stock needs to trade on a lower multiple of 2003 earnings to be attractive.Joe Osha
The rate of decline for both the flash memory and communications business in the second quarter could be more dramatic than the overall top line, leaving it to the microprocessor business to pick up the slack.
Joe Osha
We wrote last November that Sony's design choices for the PS3 had resulted in an expensive and difficult-to-manufacture product, and we think that we're seeing the consequences of those choices play out now.
Joe Osha
What we can say, however, is that expensively valued stocks are poorly prepared for surprises like the one Intel delivered yesterday.
Joe Osha
We've seen investment in capacity go up quite a bit and we had a scare this summer with wireless. So you can make a case that the business is in trouble. We try to focus on slightly longer-term fundamentals. The relationship between spending and revenue in this business is still reasonable. Visibility is still good. Pricing is good. Let's not forget, wireless handset demand is growing 50 percent over year-on-year. So with stocks down a bit and the fundamentals still solid, we though it was time to declare the mid-cycle correction over.
Joe Osha
The semiconductor sector in general is in very good shape the industry hasn't invested enough in capacity and that is actually very good for chip makers. Intel is often treated as a proxy for the chip sector, so the chip sector is doing well and so is Intel.
Joe Osha
Readers Who Like This Quotation Also Like:
Based on Topics: Business & Commerce Quotes, Past QuotesBased on Keywords: service-provider
The success I have achieved in bodybuilding, motion pictures, and business would not have been possible without the generosity of the American people and the freedom here to pursue your dreams.
Arnold Schwarzenegger
We work because it's a chain reaction, each subject leads to the next.
Charles Eames
I grew up in the West, grew up on the land, was educated as a geologist. And I came here with a vision of what it is we ought to be doing.
Bruce Babbitt