Microchip Technology Incorporated (MCHP)

I took time to analyze all companies in SOX index to select those, which would fit holding during tapering (those, which are not overvalued, profitable and are set to generate good income near-term). Here's my best bets:

$KLAC - my best bet and safe-haven. Unlike some other semiconductor equipment manufacturers ($LRCX, $AMAT, $TXN) this one is on the front of the chip miniaturization and its metrology equipment is used in testing and production of 3nm, 5nm and 7nm nodes. This company's further prospects and financials will be very correlated to $ASML, because smaller nodes require more metrology. But KLAC is currently 2-3 times cheaper than ASML fundamentally. Moreover, even if after EUV lithography there will emerge some alternative production equipment for sub-nm nodes and ASML loses its dominance, KLAC still should feel fine because even more metrology will be needed for smaller nodes regardless of production technology - so safe to hold like 10 years ahead.

$AMKR - company is on the front of the chip shortage and engaged in production of microchips used in devices, wearables, IoT, vehicles etc. The company is extremely cheap fundamentally, even though it has grown 2x since the pandemic begun. Management comment that it will experience cyclical tailwinds at least through whole 2022 and good results has only started to show up in earnings yet. I expect at least 30% upside here yet going forward but it is not a long-term asset.

$MCHP - analog and digital microchip producers, whose products are in high demand right now. Company is again relatively cheap to its peers ($MRVL, $ADI), while management reports 60 weeks lead times on new orders in some categories right now. Everything is essentially booked up 1 year ahead already. Company is about to get a 2:1 stock split too in one week.

$INTC - Intel apparently is cheap fundamentally compared to its peers and overall has been beaten down for several quarters. But near-term some positive developments are about to start working. New family of processors on new chipset and new DDR5 memory is poised to be a success starting selling in November. In January Intel will finally release new videocards, which are planned to be competitive this time to $NVDA and $AMD . Also new CEO's plans to engage into fab business goes well with current chip shortage theme. Time will tell if Intel can return its lost share in processors and videocards but the possibility of it should give the stock momentum anyway.

Well I do understand downgrade but I don't agree with it. The thing is that there will be 2 very positive quarters now it is sort of given and then they probably expect things to return to normal + Q1 is not the strongest quarter seasonally overall. So in other words they expect a normal kind of cycle here. But I think it is not a normal kind of cycle - did you hear before about production halts due to semiconductor shortages? While other firms like $MRVL, $MCHP, $ON forecast very strong demand for 2022 I am sure business will be booming here as well, because firms are reluctant to increase their production capacity significantly - not to get into overproduction when things improve - instead they try to outsource production for the time being where possible. Then again next year will have a significant momentum in consumer PCs and servers because of rotation to DDR5 and new processors, mobile also should be strong because of further expansion of 5G, cause many people still haven't rotated to a 5G phone.

Some implied moves for #earnings next week(1of2):

$GOOGL- 5.8%
$DIS 5.5%
$SNAP 12.5%
$CMG 6.6%
$GILD 4.8%
$MTCH 13.0%
$MCHP 6.5%
$SPOT 7.9%
$QCOM 6.2%
$TWLO 10.1%
$IRBT 16.4%
$PTON 14.5%
$GRUB 15.1%
$TWTR 11%
$UBER 8.7%
$PINS 12.9%
$WYNN 8.7%
$ABBV 4.5%
$F 6.24%

Bonds yields are slightly down most of my stocks are down

$JPM $MU $LEN $MU $MCHP $X $FCX

Commodities down
Financials down
Homebuilders down
Semiconductors down
biotechs down

What the #$%^ is up in this market?

Who thinks Steve Laub was either the most grossly incompetent CEO ever, or worse, a criminal, using Atmel as his piggy bank??
Ever wonder why the company was SOLD, instead of giving responsible leadership a go at it?
There is only ONE answer I can think of.
;0\

Microchip will release its Third Quarter Fiscal 2017 financial results after market close on Tuesday, February 7, 2017. The conference call associated with this release will take place on Tuesday, February 7, 2017 at 5:00 p.m. (Eastern Time). The call will be simulcast on the internet at www.microchip.com. An internet replay of this call will be available for a period of 7 days following the call at www.microchip.com.

A telephonic replay of this call will also be available from February 7, 2017 at approximately 8:00 p.m. (Eastern Time) until February 21, 2017 at 5:00 p.m. (Eastern Time). To access this replay, please dial 719-457-0820 and enter access code 3591995.