The RF to Light 100 rose 3% last week, YTD +14% at 2421. There is a growing feeling among investors that the bull market has caught a second wind. Oil, earnings and speculation fueled the equity markets while US economic growth indicators didn't change. Fading chance of US rate cut moved dollar higher.
Blow out numbers from Sony Ericsson.
In the news: Strong growth at Hittite Microwave propelled them into the world's top 10 GaAs device suppliers in 2005 for the first time. RF Micro Devices, Skyworks and TriQuint account for 52% of the merchant market. Eudyna, Sony and NEC fell out of the top 10 while Mitsubishi and Toshiba gained market share.
GaN developers are chasing the wrong market, should concentrate on 3.8 GHz and up as LDMOS doesn't work at these frequencies. Worldwide sales of mobile phones on track to 960m units in 2006 with Nokia and Motorola leading. Sprint to spend $3b next 2 years on 4G WiMAX network with support from Intel, Motorola and Samsung. GaAs component suppliers set to benefit from network build, as well as Cree with wide-bandgap transistors. Powerwave shares tumbled 17% last Monday on lower 3Q sales outlook from $200m to $155m due to internal software & product transfer problem.
Market oversold indicator: down to 69%
Market overbought indicator: up to 55%
New Highs: AGR, COMCSA, CSCO, FLEX, HITT, HPQ, LMT, OPLK, ROG, RTN, TDY, TWX
New Lows: PWAV, ZHNE
Top 5 - last week: Amkor (44%), Herley (26%), Vitesse (20%), Anadigics (14%), Micrel (12%)
- YTD : Broadwing (118%), Hittite (117%), Avici (101%), Finisar (82%), Rogers (79%)
Bottom 5 - last week: Powerwave (-19%), Ciena (-9%), Tellabs (-4%), Sprint (-4%), Juniper (-4%)
- YTD : Powerwave (-50%), Zhone (-49%), HEI (-37%), Bookham (-37%), Vitesse (-35%)
by Sectors:
Space & Defense : +2%, YTD +17%
Communic. Systems: +3%, YTD +29%
Network Systems : +4%, YTD - 2%
RF Semiconductors: +6%, YTD +10%
RF Components : +2%, YTD +15%
F/O Components : -1%, YTD +24%
Miscell. : +3%, YTD +13%
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RF to Light 100 : +3%, YTD +14%