BOSTON, Oct. 16, 2003 (PRIMEZONE) -- Intel's (Nasdaq:INTC) better than expected quarterly results didn't surprise the pmcw Report's (http://www.pmcwreport.net/) Paul McWilliams. In late September, as the tech market slumped, he advised members to buy his focus stocks on weakness. This advice was in large part due to his expectations that Intel and others would surprise on the upside.
He reiterated his bullish view of Intel to readers on October 9th, saying, "some of AMD's success in Flash may have come at Intel's expense, but our sources indicate Intel is doing so well in the PC space it shouldn't make a bit of difference to their bottom line."
Those who follow Intel knew it would take a better sequential gain than the company has seen in 25 years to beat this mark, but McWilliams was confident his field contacts had the right information.
McWilliams also predicted an upside surprise in Linear Technology (Nasdaq:LLTC): "Linear Technology is the master of understatement so it will be no surprise when they surprise to the high-side in Q3." Not only did they beat estimates, but they also guided up for Q4.
In evaluating these companies after their conference calls, McWilliams said, "It's not a question as to whether they are doing well, they are clearly doing great; it's a matter of valuation and what you think is going to happen in 2004." He suggested traders look for opportunities to sell some shares on any bumps upward of $3 to $5 and look forward to possibly replacing them during a December dip he sees in our future.
However, there are other semiconductor stocks he feels are still good buys at current prices. One, he says, could double next year and, if the market turns out to be as robust as some think, may do considerably better.
Semiconductor companies make up roughly 75% of the pmcw Report's model portfolio equity position. As of this writing, the annualized YTD return of this equity portfolio is over 300% and all the stocks held are up by over 100%. In total, since starting the pmcw Report in September 2002, McWilliams has provided members with over 35 ideas that have returned gains exceeding 100%. What's possibly even more amazing is not a single idea is currently sitting at a loss.
Throughout the year readers of his report have enjoyed commentary on Intersil (Nasdaq:ISIL), Sonic Solutions (Nasdaq:SNIC), Safenet (Nasdaq:SFNT), Broadcom (Nasdaq:BRCM) among many others.
With nearly 40 years of investing experience and 20 years working with great tech companies such as Altera (Nasdaq:ALTR), Cypress (NYSE:CY) and Linear Technology, McWilliams knows the good times don't roll forever and the price of many stocks is already reflecting way too much of what's to come. However, he reminds us, "If you know where to look, there are still plenty of great investments today. Our goal is to help our members understand what is happening and find the undiscovered companies that will outperform the market."
Readers can review his complete earnings commentary and learn about his favorite semiconductor companies and investment ideas by signing up for a 30-day free trial: http://www.pmcwreport.net/join.php3?refer=PZ2
About the pmcw Report:
The pmcw Report is a subscription financial newsletter managed by semiconductor veteran Paul McWilliams and Raging Bull co-founder Rusty Szurek.
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