( ESNUG 506 Item 5 ) -------------------------------------------- [06/27/12]
From: John Cooley <jcooley=user domain=zeroskew not mom>
Subject: Goldman Sachs, Jefferies, BNP Paribas, Daiwa downgrade TSMC stock
Quick recent financial news from Wall Street:
- Analysts at BNP Paribas downgraded TSMC from "buy" to "hold." TSM's
shares closed at $13.55 yesterday. (Benzinga.com 06/14/12)
- Robert Lea of Jefferies Group downgraded TSMC's stock from "hold" to
"underperform," telling investors, "Our checks suggest earlier thoughts
of re-stocking have now given way to de-stocking, as confidence in the
economic recovery has evaporated." (Smartbrief.com 06/01/12)
- Goldman Sachs downgraded TSMC from Buy to Neutral, price target lowered
from $16 to $13.50. "After the strong wafer shipment growth in 2Q12
and 3Q12, we believe foundry demand would start to decline in 4Q12 due
to weakening end-demand in Europe and China and rising supply chain
inventory." (StreetInsider.com 05/31/12)
- Daiwa downgrades TSMC to Hold from Outperform. (WSJ 04/26/12)
Plus two tips from a well known paid-opinion blogger:
- BofA/Merrill Lynch downgraded TSM from Buy to Neutral.
(StreetInsider.com 02/21/12)
- Deutsche Bank downgraded TSM from Buy to Hold.
(StreetInsider.com 08/26/10)
As to the WHY of these recent TSMC stock downgrades:
"TSMC REPORTEDLY SEEING ORDERS SLOW DOWN
TSMC's IC design customers have been cautious about placing orders
scheduled to ship in the fourth quarter of 2012 as uncertainty is
discouraging them from stockpiling inventory, according to industry
sources in Taiwan."
- from Digitimes.com (06/19/12)
The article went on to report that this TSMC order slow down was NOT for
their 28 nm fab -- where demand still far outstrips supply. The problem is
it's predicted 28 nm will only account for 10% to 20% of TSMC's revenue
by the end of 2012. In other words, the world is saying it doesn't need
that many 65/40 nm chips any more -- which is where TSMC makes over 90%+ of
its revenues today -- which is bad (short term) news for TSM shares.
Bloomberg says "TSMC Falls Most In 3 Years After Goldman Cut". (06/01/12)
- John Cooley
DeepChip.com Holliston, MA
---- ---- ---- ---- ---- ---- ----
Related articles:
TSMC & UMC 28 nm, TI, Nvidia "priority", Qualcomm, Forbes magazine
"TSMC meets less than 70% of 28 nm chip demand at present"
After 14 weeks, TSMC now finally admits it has 28 nm problems
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