Replies to post #282095 on Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Mother of all 2:22 rallies- ML Calls for Defensive Semis

Merrill Lynch & Co., Inc. Semiconductor:
We survey a total of 52 major OEM, EMS & electronics distribution firms, as well as another 30 large semis, in order to build our quarterly inventory database. Downstream inventories grew minimally, expanding by 3% from the March 04Q - underscoring how semi device makers have been stuck carrying inventory risk. Think that deliberate inventory building & slightly softer than expected demand combined to drive days of downstream inventory up (Q2 193 from 189 days in Q1).

Semiconductors:
Companies with very profitable business models, most notably PLD and analog firms, continue to top the list overall despite lower rankings on valuation metrics. Money-losing or marginally profitable firms with checkered operating histories fill out the bottom part despite what might appear to be compelling valuations. Higher-quality, defensive names that top our ranking are the ones that we think make the most sense given our conservative stance. Highlight (LLTC), (MXIM) & (ALTR).