Maxim Integrated Products Inc. (MXIM) is an OEM [original equipment manufacturer] of semiconductor analog and mixed signal ICs [integrated chips]. September quarter revenue was inline with the consensus, although the EPS missed by a penny. Forward guidance is for a revenue decline of 12-18%. Management has announced a significant reduction in the capex for 2009, in response to the broad macro weakness.We are reiterating our Buy rating on MXIM shares, given the diversity in the company's markets, healthy product pipeline, strong cash generating capabilities and cheap valuation. MXIM shares are currently trading at an 11.0x multiple of our 2009 EPS estimate (P/E). We reiterate our six-month target price of $20.00, which corresponds to a 18.7x P/E multiple.Sejuti Banerjea contributed to the report. Read the full analyst report on MXIM "MXIM" Free Stock Analysis: Buy? Sell? ...

Management at Photronics, Inc. (PLAB) has dropped breakeven to $101 million from $113 million in mid-2008, and expects it to improve further.

Photronics management is encouraged by several opportunities at the leading edge with expanded presence in FPD masks and increased penetration and capacity to support 90 nanometer and below customers. That said, the outlook in space is murky.

We feel the firm will trade at current valuation metrics for the near future. We set a price target of $2.00.

The Semiconductor Industry Association (SIA) projects 2009 sales at $246.7 billion, a decline of -5.6% from 2008. The PC market is expected to generate the largest chunk of sales in 2009 with a 39% share, followed by consumer at 21%, cell phones and mobile devices at 19%, industrial/military 8%, automotive 7%, and wired communications 6%. Cell phone units are expected to be down -6.4%, PC units down -5%, PMP/MP3 units

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The manufacture of photomasks is increasingly turning to in-house facilities at more mature nodes. Consolidation within the industry continues, as semiconductor manufacturing companies acquire photomask production assets. Photronics, Inc. (PLAB) is the last major independent merchant supplier.The capital structure has considerable leverage with a debt-to-equity ratio of 41.7%, which will be lowered after the convertible bonds mature in December. Almost all of the debt is convertible subordinated notes, which if exercised, could potentially be dilutive to equity shareholders.Photronics has strong technical development capabilities, and is experiencing growth in its 130nm and 90nm product lines. In the near-term, this growth will not outshine a maturing legacy product and soft markets. Consequently, we rate shares of PLAB a Sell. Our target is $1.50 per share.Read the full analyst report on PLAB "PLAB" Free Stock Analysis: Buy? Sell? Hold?...

As I write this Friday morning, it is a quiet day on the markets. Stocks are mostly unchanged, largely due to a lack of news and a lack of volume.

I expect volume to remain below average until Jan 5. Many portfolio managers have closed the books and there is very little news scheduled for the next 7 days.

January should be interesting. There may be excitement heading into the inauguration. It would not surprise me to see some type of Obama rally.

On the other hand, fourth-quarter earnings are going to be lousy. Current forecasts show 276 S&P 500 companies reporting a year-over-year decline in profits. Earnings for the S&P 500 will still be positive, however, with modest growth of 3.3%. Coal, drug, medical products and refining companies should report the strongest growth. Avoid steel and semiconductor companies.

The economic data won't be positive either. December was another month

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Shares of Micron Technology Inc. (MU) plummeted 6% today before rebounding. The semiconductor device manufacturer declared Tuesday a wider first-quarter loss in the face of the falling average prices for memory-chip products. DRAM and NAND Flash prices fell 34% and 24%, respectively, during the quarter. The Boise-based company suffered an adjusted loss for the quarter of 72 cents a share, far worse than the 43-cent loss brokerage analysts had projected. (It was the third time MU has missed expectations in 4 quarters.) Revenue dropped to $1.4 billion from $1.54 billion, a year ago. MU is a Zacks #3 Rank ("Hold") company.

"MU" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

In the past 10 years, the fundamental shift from corporate IT to consumer demand is very important to consider when looking at the semiconductor industry. This has created a different playing field. There are more products that use semi components (MP3, cell phone, automobile, smart houses). Seasonal demand is now an issue, such as the Christmas and Chinese New Year. Finally the potential exists for more commoditized products and ASP erosion.

Firms that will out-perform in a slightly negative GDP environment include:

* Firms with the strongest balance sheets, such as Intel (

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In the past 10 years, the fundamental shift from corporate IT to consumer demand is very important to consider when looking at the semiconductor industry. This has created a different playing field. There are more products that use semi components (MP3, cell phone, automobile, smart houses). Seasonal demand is now an issue, such as the Christmas and Chinese New Year. Finally the potential exists for more commoditized products and ASP erosion.Firms that will out-perform in a slightly negative GDP environment include:* Firms with the strongest balance sheets, such as Intel (INTC)* Companies that make specialized semiconductors (e.g. chips used in dentist X-rays) * Firms that sell products that are technology driven rather than capacity driven* Companies that are gaining market share because of superior technology, a la Varian (VSEA)* Firms that sell products associated with regulations such as power ...

No companies are expected to top expectations. Micron Technology, Inc. (

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Tech stocks are certainly not immune to the global downturn, but when Apple’s (Nasdaq:AAPL) sales decline the sector could be in for a dragged-out recession. Coupled with a surprisingly aggressive downturn in semiconductor sales for next year, it could be 2010-2011 before we see any significant opportunities for investors in anything digital.

Starting with PCs, U.S. retail sales of Apple of Apple’s desktop Macs slipped 1% last month over the previous year. At the same time, PCs sales increased 2%. The message on the wall here is that American consumers are going down-market for their computers - scooping up the commodity low-margin models that eat away at the corporate bottom line.

Given that Apple’s slowdown comes during the ramp-up for holiday sales, the projections for early 2009, and perhaps the entire year, are expected to look dismal for its Mac family

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Cadence Design Systems, Inc. (CDNS), headquartered in San Jose, California, is a leading provider of electronic design automation (EDA) software that chipmakers use to design their integrated circuit (IC) components. Its solutions are used for designing semiconductors, networking and telecommunications equipment, computer systems, consumer electronics, and a host of other electronics-based products.

Cadence appears to be in big trouble as the company's CEO resigned unexpectedly amid mounting financial problems and disappointing results. The company reported lower-than-expected Q308 results hurt by restructuring charges and lower product revenues. Moreover, Cadence has again lowered its guidance for the full year of 2008.

We have lost confidence in the company's ability to survive in the market and show healthy fundamentals. Cadence has been losing share to Synopsys, Inc. (SNPS) and is struggling through a downturn in the semiconductor cycle. Cadence also withdrew its bid for Mentor Graphics earlier in the year, further dimming its

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