Nomura Securities on U.S. Semiconductors: Q2 Earnings Season Upon Further Review - Top Longs and Shorts
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Analyst, Romit Shah, said, "We maintain a Neutral sector view. Top long ideas are Avago (Nasdaq: AVGO), Broadcom (Nasdaq: BRCM), and Nvidia (Nasdaq: NVDA). Top short ideas are Intel (Nasdaq: INTC), Marvell (Nasdaq: MRVL), and Altera (Nasdaq: ALTR). When stocks go up on number cuts, it is generally a bullish signal. To that end, semis rallied 5% last week. We believe last week’s rally will prove short-lived because estimate cuts in July were not deep enough. On average, Q3 revenue growth is only 1% below seasonal. More confounding is that the Street forecasts a better than average Q4. AMD (NYSE: AMD) is trading at a 14-year low valuation. We see further pressure ahead. Avago remains a top pick into earnings. Altera spoke boldly about 28nm share; however, considering initial volumes, supply constraints, and SSI traction, we believe Xilinx (Nasdaq: XLNX) is on much better footing relative to the prior node. SanDisk (Nasdaq: SNDK) is benefitting from an improving supply-demand environment in the seasonally strong back half of the year. Samsung shipped more than 50mn smartphones in Q2, up 10% from Q1 in a seasonally weaker qtr. We view these share gains as positive for Broadcom (Nasdaq: BRCM), which is gaining share in the mid-range smartphones at Samsung."
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JULY 2011: Romit Shah Top Short Idea
Romit Shah recommended REDUCE on Intel with a target of $18 in July 2011 when Intel was trading at below $20. Romit Shah has recommended continued shorting of Intel as it has paid 80 cents dividend and now trades 30% above his short recommendation.
If Intel is Romit Shah top short, then WHY is his Intel target $25??? If Intel is a Romit Shah top short, then why not put the target at the short price GOAL?
Romit Shah BUY recommendations were ARMH at $30, NVDA in the $20's are both down 20%.
Romit Shah needs more customers. His previous customers have not funds left to invest.
No wonder Lehman Bros. went out of business.
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Romit Shah has horrible record
PC Man on Jul 31, 2012 02:09 PMMark as Spam | Reply to this comment
This guy is about as stubborn as they get. He has been wrong like stretcho44 said on Intel. About a year ago, he insisted that Intel will miss quarterly revenue and come in at or below low end of guidance. Instead, Intel shocked everybody and came in with revenue of $1.1 Billion over expectations. More than half a billion above the highest expectations. And this insignificant wanna be analyst (Romit Shah), comes on CNBC saying it's a conundrum that Intel beat earnings so well. The fact that this guy is still employed as an analyst is a conundrum. Unbelievable there are still articles quoting him without reminding investors of the terrible calls he has made. I consider him as a complete joke. He should be in complete awe of what accomplishments Intel has made and will continue to make.