BOSTON, August 22, 2003 (PRIMEZONE) -- The recent spike in semiconductor share prices hasn't surprised Paul McWilliams. A twenty-plus year veteran in the industry and named by SmartMoney as one of the most influential people in the world of investing, McWilliams has been advising subscribers to his newsletter, the pmcw Report (http://www.pmcwreport.net/), for nearly a year that the sector would realize a broad-based recovery in 2003.
While Gartner, SIA and other research houses slashed their 2003 semiconductor outlooks earlier this spring, McWilliams stuck to his 11.7% growth forecast. During the forth quarter of 2002, he predicted the broad semiconductor recovery cycle of 2003 would be fueled by a long awaited flurry of PC buying and higher sales of consumer electronics.
With the year more than half over, others are starting to sing the same song. "I am surprised it took the investment community so long to catch on to the turn of the semiconductor market. The stage was set during Q4 2002. The volume in semis increased considerably in 2002, but sales were essentially flat. With the inventory depleted and capacity utilization increasing, the average selling price (ASP) will jump at least a couple of cents this year. Just a $0.01 increase in ASP adds over $3B in sales," stated McWilliams.
It's this focused and sometimes contrarian approach that has led to big gains for his model portfolio. Since its September 2002 inception, the pmcw Report equity portfolio has returned a staggering 214% versus a 35% rise in the Nasdaq.
While he's locked in some gains, selling Analog Devices (ADI) for a 70% return in less than five months, McWilliams continues to look for opportunities in the space. "I'm far from blindly bullish, but feel there are still many companies selling below their fair value ranges."
Given his industry background, McWilliams may have an easier time than most finding the proverbial diamond in the rough. A great example is Xicor (XICO) a small-cap semiconductor company that has seen radical changes in management and strategy. "We carefully built a Xicor position over time and now sit on a large number of shares with an average cost of $3.22," said McWilliams.
In addition, McWilliams has also provided his readers with numerous other investment ideas. Some examples follow:
-- EMC (EMC) up 106% since his December 19th mention
-- Cisco (CSCO) up 45% since his December 9th mention
-- Altera (ALTR) up 122% since his October 4th mention
-- Sonic Solutions (SNIC) up 79% his their May 13th mention
-- Juniper (JNPR) up 84%, PMC-Sierra (PMCS) up 110% and JDS Uniphase (JDSU) up 13% since his January 17th mention
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. The report aims to give its readers the tools and investment ideas to build long-term wealth. Members enjoy daily postings, economic updates and model portfolio, and receive email updates of their latest commentary.
To learn more please visit the site: http://www.pmcwreport.net/