UTAC   

NEW POSITIVE REVIEW OF SEMICON INDUSTRY

Prices of DDR1 and DDR2 have been on the uptrend since bottoming out in Dec last year. Firmer DRAM prices are indicative of strong demand, which is positive for UTAC. Memory segment accounted for 61% of its sales in 2005, and in 2Q06, DRAM, Flash and other memory types (NOR Flash mainly), accounted for 31%, 9% and 3% of sales respectively.



For NAND flash, UTAC remains a key source supplier to one of the major NAND flash memory supplier. The new generation iPod should restore some confidence over NAND flash memory demand over the next 2 quarters and prices should start to firm given improving demand in the holiday quarter.

 

   Technically, the chart is on up trend and the next resistance is $0.835. Whether or when it will reach there is anybody's guess. It looks quite likely to hit $0.785 with the present momentum. $0.785 is derived by adding $0.715 (last resistance that was broken) and the difference between that and the base of $0.645. May consider taking profit when $0.785 is reached.

 

Hi lowpeckkiyau. Looking at you, it seems that you always chase after stocks because you always buy near their highs. Don't do that! What you should do is buy when everybody is panicking and dumping stocks. Be bold and buy then! You should have bought around $0.64. Now I think the price is on its way down again.

 

It should break that today...  Support level at 0.745 is strong.

 

  Yes, the counter is certainly looking good. As long as there is no hiccups in major markets, it should be able to push further up, the initial target should be $0.76.  

 

Hi allantanhc, its looking good so far with top volumes for the pst two days.  Still rising based on good reports on this industry.  Hope it sustains.



lowpeckkiyau - not too sure how to advise you as each has his/her own way of assessing the market.  TA or FA?  If you look at target price of 0.94 then I would say that it makes sense to average.  On the other hand, how often has market reports proved substantial?  Guess you need to do some form of homework first.

 

Aiyoh,  yoh,  looks like I'm  always  a loser.  Every counter lose money.  Sigh!

Bought at  $1.03,  should I  buy in  to average it now.  Every time,  I average it,  it  dips further.....

My next  quarter resolution,   follow closely on  si fi advice  to pick the right stock  to get back my losses....

Dear guru,  your advice pl 

 

Hi, Sandbox. Thanks for the company. All signs are turning positive for technology stocks now. This counter should perform well from here. It has hit 74 cents this morning. Good. 

 

Hi allantanhc,

Have taken up position at 0.69.  Hopefully the analysise is right..  Resistence at the moment stands at 0.725.  Hope it can be broken soon.

Cheers.

 

Well, no right no wrong as long as you are happy.  

 

I just sold mine this morning at 72.5 cents liao... Take profit to cover some of my other losses.

 

UTAC has established a very strong support at $0.655/$0.645. At the current price level ($0.695), there is substantial potential upside. Using Fibonacci, the target price can be set at 0.618 between the last high of $1.10 and the low of $0.645. This works out to $0.93 which is about the same as the TP of $0.94 articulated by UOBKH. Buying at this price with stop loss at $0.64 looks a reasonable risk to take. I am vested. Anyone moving along with me?  

 

Let me add one important statement to below's article taken from Market watch site:

"AMD has vowed to capture 30% of the server processor market by the end of the year. "

 

 

AMD's Answer To Intel's Woodcrest: Opteron Rev-F

Opteron Rev-F is AMD's first server processor to include integrated virtualization technology that was developed under the code name Pacifica.

By Darrell Dunn
InformationWeek

Aug 14, 2006 12:00 AM


Those two are at it again. Advanced Micro Devices this week will release its next-generation Opteron processor, its answer to Intel's Woodcrest Xeon 5100 series chips.

The Opteron Rev-F is AMD's first server processor to include integrated virtualization technology that was developed under the code name Pacifica, and to use second-gen Double Data Rate memory. The chip initially is available for just dual-core implementations, but AMD says customers will be able to upgrade to quad-core processors when they're available in mid-2007. Microsoft, Novell, and Red Hat were among the software vendors that say they'll tailor their offerings for the new chips.

The Opteron Rev-F gives AMD ammunition against Intel's Woodcrest chips, which use its new Core architecture and go a long way in closing the performance gap that AMD has created in the x86 server space over the last two years. AMD's share of the x86 server processor market grew to 25.9% in the second quarter, up from 22.1% in the first quarter, according to Mercury Research.

Dell, HP, IBM, and Sun are among the vendors that will offer Opteron and Woodcrest systems to customers.

 

 The counter has declined by one cent. Opportunity to accumulate on dip?

 

Thanks, Singaporegal.

 

thanks... good post for you!

 

Source : UOBKH

Positive news flow recently:

TSMC and UMC reported strong sales in July. Both TSMC and UMC

reported strong sales figures in Jul 06. TSMC recorded a 32.2% yoy increase

in sales to NT27.6b. UMC recorded a 30.2% yoy increase in sales to NT9.2b.

Recovery in contract prices for DRAM. Contract prices for DRAM has soared

since 2H July and grew 3-5% in 1H Aug (source: DRAMeXchange). Prices for

DDR DRAM registered higher increases relative to DDR2 DRAM. There is

persistent supply shortage as DRAM makers reduced their inventory levels to

seven days compared to previous 10-14 days.

United Test & Assembly Center (UTAC) will benefit from recovery in DRAM

prices. DDR DRAM volume from Qimonda has recovered since late-June after

the customer increased production capacity. It is scheduled to receive wafers

from Hynix's new Wuxi fab in Aug/Sep 06. UTAC has secured orders from new

Communications customers Freescale and Qualcomm, which will boost

contribution from mixed-signal testing. It is adding more assembly capacity in

Singapore to support full turnkey services and wafer sorting capacity in Taiwan.

Buy recommended with target price of $0.94

Global Testing guided sequential revenue growth of 2% to 6% in 3Q06.

Volume from Sunplus is expected to pick up from middle of 3Q06 due to the

seasonal upswing in preparation for the peak holiday season. Orders from

Realtek (LAN chips) and MStar (LCD controller) is picking up while orders from

Marvell remain strong. Global Testing has secured new projects from Phillips for

DSP for digital TV and power management chips for mobile phones and testing

services has commenced in 3Q06.

Buy recommended with TP of $0.43.