Monday, December 11, 2006

Calls of Note Part 5

- UBS comments on Energy Conversion Devices (NASDAQ:ENER) saying articles posted to various websites on 12/10 (WSJ, EETimes, NY Times), suggest that IBM, Macronix and Qimonda will announce a phase-change memory prototype at the International Electron Devices meeting on 12/11. According to EETimes, the IBM PRAM boasts switching speeds at more than 500 times faster than traditional flash-memory technologies.

At first read, IBM's technology appears to be a new competitor to ENER's OUM. In November, Ovonyx discussed Samsung's OUM prototype as being 30x faster than traditional flash. The firm believes there are many parameters over which these technologies could be compared (speed, life, size, cost, scalability, intended applications, time to market), and they do not yet have enough data to compare the two.

Believes an additional competitor such as IBM could be perceived as a challenge for OUM.

Maintains Buy and $46 tgt on ENER.

Notablecalls: Sitting at my old trading desk I would watch sellers come in after the open and would then step in front of the action expecting Jeffco to come out in defense. Squeezefest. Let's see if this works out this way today.

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