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Monday, June 12, 2006

Calls of Note Part 4

- Goldman is upping their ests on HANS as retail data shows that Monster's brand momentum remains robust, driven by superior same-store sales and distribution growth. Second, it appears that all-channel gross sales were up 105-110% for Q2-to- date through mid-May, so even firm's upwardly revised forecast assumes a slowdown to 80% growth for the rest of the quarter. Thinks a recent pull-back has created a nice entry-point relative to new $235 fair value estimate (up from $230).

Notablecalls: While Longbow beat Goldman on Friday, they do have a lot more following. Also, HANS just announounced four-for-one stock split! Looks like it will be going higher.

- RBC comments on INTC saying their checks continue to show the PC-market in doldrums with things getting progressively worse. Intel's June-Q looks increasingly bleak with company tracking low-end of guidance with potential of missing that bar as well. The price war ensures company is taking back some unit-share but not revenue-share back from AMD, which is also suffering from the bleak end demand environment. Firm expects their estimates to continue to get slashed for quite some time.

Expects the "It's Down a Lot, Let's Buy it" rhetoric to get louder, and the possibilities of short-term bounces increase. Recommends investors stay clear of jumping into the long-Intel/PC trade right now, and use rallies as a gift-to-sell.

Notablecalls: Agree with RBC. Believe we will see a bounce in Semis soon. But only a bounce.

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