BOSTON, March 16, 2004 (PRIMEZONE) -- The pmcw Report (http://www.pmcwreport.net) recently commented on Intersil's (Nasdaq:ISIL) acquisition of Xicor (Nasdaq:XICO). The pmcw Report is a subscription investment newsletter started by twenty-year semiconductor veteran Paul McWilliams. McWilliams was also named by SmartMoney as one of the thirty most influential people in investing.
Started in September 2002, the pmcw Report's model equity portfolio positions have returned a staggering 339%, well outdistancing the Nasdaq's 51% gain over the same period. Since January 1st, 2004, the report's equity positions have gained over 22%.
McWilliams has written nearly one hundred reports on Intersil and Xicor. In an early December 2003 report, When Xicor was trading for $11.00, McWilliams clearly stated Xicor would be a good acquisition target for Intersil, "I cannot think of another public company that would do more to enhance Intersil's product differentiation than Xicor." Yesterday, Intersil announced they would buy Xicor in a cash and stock deal valued at $15.58 per share. McWilliams had this news on his web site nearly a half an hour before Reuters.
McWilliams has owned both Intersil and Xicor in the report's model portfolio since September 2002. His average cost basis for Intersil is $13.13, for a gain of 72.4% and his average cost basis for Xicor is $3.50 for a gain of 345.1% (based on the acquisition price). In addition to holding core positions in these stocks, he has also provided members with numerous trade points - 100% of which have been profitable.
Following the announcement of the acquisition, McWilliams provided members with reports detailing:
- How the transaction is valued and how the value will change with
the price of Intersil stock.
- Scenarios and considerations Xicor shareholders should consider
as they assess whether or not they should sell or hold their
shares through the closing.
- Exactly what each company brings to the party and why the sum is
greater than the parts.
- Synergies in strategic markets and technologies.
- "Fair value prices" for buying and accumulating shares of
Intersil.
McWilliams previously helped members understand why it made sense for Intersil to sell their low profit Wi-Fi division to GlobespanVirata (Nasdaq:GSPN), now owned by Conexant (Nasdaq:CNXT). By his estimates, the Wi-Fi division returned only 10% operating profits and, according to projections provided by Intersil management, they will reap 30% operating profits from Xicor's highly differentiated product line.
Last week McWilliams wrote comprehensive reviews of over thirty semiconductor stocks. In this report he provided his bullish or bearish sentiment on each company and price targets to use for entering those he felt had merit as either a short- or long-term investment. McWilliams was also very clear in noting several tech stocks he thinks investors should simply avoid.
Companies covered in that report include:
Advanced Micro Devices (NYSE:AMD) Altera (Nasdaq:ALTR) Analog Devices (NYSE:ADI) Broadcom (Nasdaq:BRCM) Intel (Nasdaq:INTC) Linear Technologies (Nasdaq:LLTC) National Semiconductor (NYSE:NSM) Silicon Laboratories (Nasdaq:SLAB) Texas Instruments (NYSE:TXN) Vitesse Semiconductor (Nasdaq:VTSS) Xilinx (Nasdaq:XLNX)
and many more.
Those interested in reading his detailed report about the above companies and portfolio recommendations can sign up for a free thirty-day trial to his service:
http://www.pmcwreport.net/join.php3?refer=PZ25
About the pmcw Report
The pmcw Report is a subscription financial newsletter managed by semiconductor veteran Paul McWilliams and RagingBull.com founder Rusty Szurek. Members enjoy daily postings, economic updates and a model portfolio.
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