The chip stampede may be hitting a wall

Article Abstract:

The Nasdaq Composite Index is up 46.9 percent this year, inlarge part due to the surge in semiconductor stocks. The Philadelphia Stock Exchange Semiconductor Index of 16 companies is up 18 percent since the beginning of November. Stocks of semiconductor equipment firms are trading at 10 to 16 times their sales over the past 12 months. The surge in share prices is surprising, given that global sales of chips are apt to rise only 14 percent this year. In addition, computer-makers have alerted investors that their business outlook for the fourth quarter and beyond is not rosy. Analysts say that investors are paying such inflated prices for shares due to the high volume of sales. The high volume of sales were driven by heavy orders for chips from computer-makers who feared a cut in supplies due to the earthquake in Taiwan. If computer sales shrink, the prices of chips and their stocks will fall again.

Semiconductors and related devices, Semiconductor Devices, Semiconductor and Related Device Manufacturing, Special industry machinery, not elsewhere classified, Semiconductor Production Equip, Semiconductor Machinery Manufacturing, Semiconductor industry, Evaluation, Investments, Securities, Semiconductor production equipment industry, Semiconductor production equipment, Applied Materials Inc., AMAT

---

Wall St. view of Saks sale: no big bargain

Article Abstract:

Proffitt's Inc, a Southern department store chain, has acquired Saks Holdings Inc. in a $2 billion deal that will result in a name change to Saks Inc. The acquisition has sent Proffitt's stocks down sharply as investors seem to be reacting negatively both to the high price and the size of the deal. One advantage for Proffitt is the opportunity to sell the Saks catalogue merchandise to the 5.2 million Proffitt's credit card customers. Saks Inc. has 96 stores and a mail-order business called Folio which will be added to Proffitt's 234 stores located in 24 states.

Comment:

Acquires Saks Holdings Inc. in a $2 billion deal that sent Proffitt's stock down sharply

United States, Asset sales & divestitures, Acquisitions & mergers, Company Planning/Goals, Retail Trade, Department Stores, Tennessee, Direct Marketing, Saks Holdings Inc., Proffitt's Inc., Article

---

Similar abstracts:

• Abstracts: An HMO chief makes a bet on being big. United HealthCare takes a big charge. United HealthCare to acquire Humana: plan to form U.S.'s biggest managed-care concern is valued at $5.38 billion
• Abstracts: The new chief is ordering up changes at McDonald's. Merchants mull the long and the short of lines. Burger King plans to change the lood of its restaurants
• Abstracts: The new monster of the midway. Not just leaving the light on; Motel 6 is still a cheap sleep, but with new strategies
• Abstracts: A group is making a multiyear effort to show the importance of ads to marketers and consumers. Madison Ave. is a hall of mirrors: advertising about advertising makes comeback in the 90's
• Abstracts: Buffet takes General Re into his fold. A humbled Cendant calls off $3.1 billion American Bankers deal. Marsh & McLennan to buy big British insurance broker

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.