Chartered   

Chartered Q2 views

Cheap can  be Cheaper, ever consider look at px of around $0.94 ???. It all depend on coming day sentiment plus oil px and Middle crisis.

 

A $1/- and below is good consideration to consolidate, for some may have to ave down or cut it losses.

 

Breadful Stocks to Avoid.....CSM was mentioned in the article...

http://www.fool.com/news/commentary/2006/commentary06072113.htm?source=eptyholnk303100&logvisit=y&npu=y

 

This is real bad news, will continue to avoid CSM.

 

LONDON (MarketWatch) -- Advanced Micro Devices Inc. on Monday agreed to buy ATI Technologies Inc. for $5.4 billion, a long-rumored deal that would open a new front in AMD's rivalry with Intel Corp.

AMD said it will pay $4.2 billion in cash and 57 million of its own shares for ATI, a maker of graphics processors and so-called chipsets that support microprocessors, which are the brains of PCs.

The chips act as a group to transmit and receive data in computers and other consumer electronics. ATI's chips are used in computers, digital televisions, video-game consoles and cell phones.

The deal values ATI at $20.47 each, using Friday's closing prices, when AMD dropped 16% to a one-year low. ATI closed Friday at $16.56.

Markham, Ontario-based ATI sells its chips to among others, AMD and Intel, AMD's much-bigger rival for PC and server chips.

AMD said the deal will "slightly" lift 2007 earnings and "meaningfully" improve 2008 earnings.

The deal will cut combined operating expenses by $75 million by the end of 2007, said Sunnyvale, Calif.-based AMD.

ATI agreed to pay a $162 million termination fee if the deal doesn't succeed.

If the deal is approved, it would mark a departure from AMD's prior strategy of turning to third-party vendors for most of its peripheral chip components. See more technology coverage.

AMD has employed this tactic to set itself apart from Intel and to give its customers more flexibility in terms of designing their products.

"This approach would place AMD on a similar trajectory as Intel's" platform strategy, Thomas Weisel analyst Eric Gomberg wrote in a July 13 research note.

Rahul Sood, president of VoodooPC, said he thinks AMD would be able to better challenge Intel in terms of laptop chip designs.

"With a little bit of polishing this acquisition will go down in history as the best move that AMD ever made," Sood wrote in his blog Saturday. "ATI + AMD = a go-big strategy that will shake the very foundation of our industry."

AMD, once considered an also-ran to Intel, has made big strides against its chief competitor over the past couple years. It has punished Intel the most in the server-chip market with dramatic market share gains. AMD has nabbed more desktop and laptop chip share too.

Buying ATI would broaden AMD's revenue stream, letting AMD tap into more consumer electronic products, a fast growing part of the semiconductor market.

Matt Andrejczak is a reporter for MarketWatch in San Francisco.
Steve Goldstein is MarketWatch's London bureau chief.
 

 

Going to $1 .... another crash today!

 

A $1/- and below is good consideration to consolidate, for some may have to ave down or cut it losses then buy back at appropriate time. Cheap can  be Cheaper, ever consider look at px of around $0.94 ???. It all depend on coming day sentiment plus oil px and Middle crisis.

 

Just happen to read the following article - Chartered Semiconductor Manufacturing. 

Bussinesses that Buffett Avoid

People spend a lot of time discussing the companies 

Buffett buys. But in the spirit of not losing money, 

it's equally worthwhile to understand the types of 

businesses that Buffett does not buy, in order to 

steer clear of potential duds. I see five main 

categories:

1. Businesses that bet the farm

2. Businesses dependent on research

3. Debt-burdened companies

4. Companies with questionable management



5. Companies that require continued capitalinvestment

Over the long term, shareholders make spectacular returns by buying businesses that are able to achieve extraordinary returns on capital. This leads to excess capital that the company can use to repurchase shares, pay dividends to shareholders, or reinvest in further growth. Companies that constantly need to make additional capital investments to keep the business going are the antithesis of this ideal -- the main beneficiaries will be employees, management, suppliers, and government. In other words, everyone except shareholders.

5. Companies that require continued capitalinvestment

Over the long term, shareholders make spectacular returns by buying businesses that are able to achieve extraordinary returns on capital. This leads to excess capital that the company can use to repurchase shares, pay dividends to shareholders, or reinvest in further growth. Companies that constantly need to make additional capital investments to keep the business going are the antithesis of this ideal -- the main beneficiaries will be employees, management, suppliers, and government. In other words, everyone except shareholders.

Semiconductor companies, because of the huge expense 

of building and maintaining chip-fabrication 

facilities, also suffer from this disadvantage. 

Chartered Semiconductor Manufacturing (Nasdaq: CHRT) for 

example, has found profits and free cash flow hard to 

come by while spending the majority of its revenue 

over the past few years on capital expenditures.

The Motley Fool

 

All these so called analysts who recommended a buy on Chartered now recommend a hold. It seems very unlikley Charterd can overturn its loss if $1 billion not even in the next 5 years. Since Chartered shares have no value, the target price should be 1c
 

 

CSM closed down 17.9% in Nasdaq. At one stage was down 25.2%! $1 here we come. Likely to test 52-week low of 94 cents.

 

With Tech stocks beginning to do battleling down at this moment, ithink just wait.... loh... for it to come down abit more, so every body can start jumping into the band wagon to buy loh.. when it  hit bottom. After all it has bleed off DBSv and OCBC and now it is KE turn.

 

Stockking: What makes you so confident that 'the worst is yet to come'. Chartered has been knocked down very badly. I wonder why.

Anything to share with us?

 

The worst is yet to come!

 

WAH!

It ended the day -17.88% on the NASDAQ. Check out its 5 year chart:

 

This is the kind of risk that punters have to take......

 

Wow! CSM down 21% (not 21 cents hor) in Nasdaq now ..... What a sell off in US!!!

 

In view of the weak guidance, net profit this year could be $69m, which would translate to a forward PE of 30x ($1.34). This is demanding compared to its historical average of 20x as well as TSMC and UMC's average of 23x. CSM had outperformed its Taiwanese peers, hence there are downside risks ahead.



Analysts have downgraded CSM. DBSV's, OCBC and KE price targets are $1.50, $1.33 and $1.07 respectively. $1 here we come!

 

Btw, forgotten to mention that CSM is a very speculative stock ... trade with care ya.

 

Yup, CSM's volatility with good daily volume is attractive.

It had disappointed and burnt many pple few years ago .... but I guess it fundamentally stronger now than before.

I will look to Q4 before off loading this stock - just 7 months away.

 

Livermore, agreed.....surprisingly, many still like to trade this counter. Perhaps, the liquidity and volatility attracted investors to it.