BOSTON, Nov. 26, 2003 (PRIMEZONE) -- Paul McWilliams of the pmcw Report (http://www.pmcwreport.net) doesn't have a crystal ball, but given some of his recent investment ideas it may seem to some that he does. When asked about his recent ideas, McWilliams said, "We can't stay ahead by following the pack; we leverage our extensive network of contacts and field research to uncover ideas before they are broadly known or understood by the investing public."
Some areas and companies he has recently mentioned include:
McWilliams mentioned Silicon Storage (Nasdaq:SSTI) when it was trading near $7 on August 25th. "We commented multiple times that the NOR Flash market was nearing capacity, which would give Silicon Storage much better pricing power." Silicon shares closed at $13.57 yesterday for a gain of nearly 100% in less than three months.
McWiliams also had the beat on Fairchild Semiconductor (NYSE:FCS) and On Semiconductor (Nasdaq:ONNN). On November 12th he wrote the following note to his readers, "Companies like Fairchild and On Semiconductor are still not trading at high premiums . . . if the seller's market materializes, both should make for profitable plays." Since his posting, shares of Fairchild are up by over 5%, thanks to an upgrade by Lehman Brothers seven days after McWilliams' call. On Semi has returned 27%, thanks to a large insider buy by the company's chairman two days after McWilliams' call.
In the test and packing space McWilliams predicted the run in both Amkor (Nasdaq:AMKR) and Siliconware (Nasdaq:SPIL). "We recommended both as they dipped in October on our belief that both companies were nearing capacity." Shares are up 15% and 21% respectively since his recommendation. McWilliams also mentioned test equipment maker Teradyne (NYSE:TER) last December and then again in June as a potential winner. Shares have moved up roughly 50% from both points. He thinks the sector "will do better than many seem to think and that possibly the most prudent measure would be to put these companies on a watch list and look for a dip of 10% or so before establishing a position." He has also suggested his readers look at a strategic Teradyne supplier, Power-One (Nasdaq:PWER).
McWilliams recently purchased Catalyst Semiconductor (Nasdaq:CATS) in his model portfolio at an average price of $7.24 ahead of the company's second quarter earnings. He sits on a gain of 14% in just over ten days. McWilliams recently stated in his detailed Q2 2004 earnings report that, "Under the current conditions, I do not classify Catalyst as a strategic long term holding," but that he does "see opportunity for an increased share price" over Tuesday's close.
He has also extensively commented on the digital multimedia revolution and continues to recommend Harmonic (Nasdaq:HLIT) as a beneficiary to the expanding industry. He hasn't bought any additional shares in his model portfolio but feels, "It's a good long-term buy below $8."
McWilliams' model portfolio has enjoyed quite a run in 2003. Since its September 9, 2002 inception, his model equity portfolio has returned a staggering 331%, well outdistancing the Nasdaq's 49% gain. Year-to-date the portfolio's equity positions have returned 268%, compared to a 46% advance in the Nasdaq.
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About the pmcw Report
The pmcw Report is a subscription financial newsletter managed by semiconductor veteran Paul McWilliams and Raging Bull co-founder Rusty Szurek. Members enjoy daily postings, economic updates and a model portfolio.
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