The Case for the Semiconductor Rally to Continue
Posted on Monday, April 21st, 2008 | In Stocks to WatchContributed by: William A. Trent (http://stockmarketbeat.com) -
My latest column is up at RealMoney. In it, I explain why I think the recent rally in semiconductor stocks should continue.
First, as I have mentioned before, the supply/demand balance remains favorable.
Second, pricing power appears to be improving, based on the most recent PPI report.
I think the names that will perform best are those whose gross margins are currently depressed, as improving margins would result in accelerating earnings power.
Disclosure: At time of publication, William Trent holds shares of SMH and MXIM, as well as put options against the shares of LRCX.
Disclosure: William Trent has a long position in SMH
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 About William A. Trent (http://stockmarketbeat.com)
Stock Market Beat editor William A. Trent, CFA, has been an equity analyst since 1996 and is co-author of Understanding and Evaluating Prospectuses, Offering Documents, and Proxy Statements. His experience includes stints with institutional investors responsible for more than $70 billion in assets and covers all market-cap sizes. Sector concentrations have been within the TMT (Telecom, Media and Technology) and Transportation sectors. He is also the senior editor of Financial Education. He is available for freelance writing and consulting projects and can be contacted here. |
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