Friday, January 18, 2008

Early morning tidbits:

- Citigroup upgrades (NASDAQ:PCLN) to Buy from Hold.

- Lehman is out in defense of
Chicago Bridge & Iron (NYSE:CBI) noting the hares have fallen sharply recently (~27% since 1/1 vs. SPX's ~9% decline and the peer group's ~20% decline). Firm thinks investors worried about a U.S. recession should revisit CBI's key fundamentals and catalysts for '08 that remain unchanged since last quarter. Reits Overweight.

- Citigroup is calling a
bottom in DRAM pricing saying the sector is showing signs of heading into cyclical recovery in late 1Q08E. Citi turned positive on the sector in Dec 2007, expecting a sharp slowdown in supply in 2008 to result in bottoming of the sector in 1Q08, not 2Q08.

- SunPower (NASAQ:
SPWR): Raymond James reits OP; solar blue chip on sale, under 25x '09 EPS.


dcxavier said...

If you believe the Citigroup call on DRAM, now is the time to back up the truck on MU.

notablecalls said...

Whats your take on MU?


dcxavier said...

It's a lousy long term investment in a commodity business, but you can make 20-30% or more in a couple of months when DRAM prices increase. DRAM prices have been falling steadily for almost a year now, so people forget how MU reacts when DRAM turns up. I've read independently at dramexchange that some fabs will close for maintenance soon, maybe that's where the Citigroup analyst got info from.

notablecalls said...

Samsung didnt cut DRAM capex..

notablecalls said...

Look at that MU go.