April 21st, 2008
The Case for the Semiconductor Rally to Continue
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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