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Monday, June 26, 2006

Calls of Note Part 4

- Jefferies says their checks with ODMs and contract manufactures in Asia indicate that Dell may begin shipping desktops based on AMD (NYSE:AMD)'s Athlon processor in the Sept 2006 quarter. These low- end PC desktops will probably be launched in Asia to test the market for these products.

Though this potential desktop at Dell provides a very important psychological win for AMD, the firm believes that the gain should be limited because ultimate success of AMD's products will be decided in the marketplace. The launch of Intels new Conroe CPU in July 2006 closes the performance gap and hence AMD will not have as much of an edge going forward, focus now shifts toward pricing.

Maintains Hold rating and $26 tgt on AMD as they remain cautious on the co in the near-term.

Notablecalls: Not actionable but good to know category.

- FBR says that based on their checks/reported monthly sales/expecting June revenues up 1-3% MOM, they believe Chipmos Tech (NASDAQ:IMOS) is on track to exceed firms' revenue/EPS estimate of $140M/$0.24. Believes the transition to DDR2 remains strong, comprising 35-40% of 2Q DRAM mix, and on track to be >50% by YE. Ratio of IMOS' DDR2/DDRI output is going up quickly, as two primary customers, Promos/Powerchip, have switched over manuf. lines to DDR2 (believes DDR2 now comprises 70% of output at both). Maintains Outperform rating.

Notablecalls: One to watch. While I expect to see some weakness in the Semi space I would not be surprised to see IMOS trading up on the call.

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