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Sterne Agee Managing Director Vijay Rakesh on the factors that may boost the semiconductor sector’s growth.
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Semiconductor sector this has been kicked to the curve over the last three months it look it's highly cyclical.
It goes through these ups and downs but is now the time on -- down to help you take advantage of it.
Each ever -- started she's managing director joining us now on a fox this is exclusive from Chicago.
And that's the semiconductor analyst Vijay.
What is it that you see right now that makes you believe that as this market goes down in semiconductors it will now go up for at least a short period of time.
No thanks I mean unless I think -- need to get this sending in those days I think is obviously we're back pretty significantly in the last two months and we think when you look back at the valuation for the last ten years especially.
2009 Teddy and Tony Levin did of those inflection elevenths then valuations kind of -- these -- send me inflict enough.
And fundamentally what you're seeing is things are still boarding up -- -- -- -- submitting its a pretty good opportunity here.
OK and as you see you can see that -- spider semiconductor of the S&P that that is down about 19%.
Over the past year and down another 12% there absorbed into that nineteen over the past three months.
What's your picks and I have said Vijay that they're not the usual suspects -- could argue that Qualcomm is -- your first one but the next two aren't.
First let me get your thoughts on Qualcomm.
Should -- are obviously it is on the big mess in the hands of space and that's it look at this yet -- next did you have that but the I forms are coming down on the -- -- -- sound sense -- coming on the back and then.
Or and that's base and they have a good and meg in good BC's this also would -- those eight and so the next phase of Bobble.
Which kind -- -- basin sits right next to.
Qualcomm and any handsets so -- of these stands a pretty good yeah obviously had a decent dividend -- that started so nor -- pretty solid balance sheets.
-- -- I'm looking at a -- the price earnings ratio eleven that's pretty cheap they do get the dividend of one point 8% -- it's not bad it's -- nice little gift on top of it.
And let's get your third pick and that's analog devices AD -- what is it about analog that you say this this company has some competitive advantage here.
That is similar in name here again they had -- -- that automotive industrial and call communication markets.
That is Saudi about achieved almost nine dollars in cash Bushehr and again at this cited there India close to 3% on the -- into the so.
Other good name yet and -- bank management -- that's.
As fast as we wrap up -- today is there a play in advance of back to school where a lot of college kids have to buy perhaps laptops and -- books is that an opportunity.
I think definitely.
I mean to hopefully cute did the stocks to book up from these Levin's he had been back to school -- and the C is not a very good for -- is -- so.
I think these names work well there.
Vijay Prakash started -- managing director great to have you with CF your prediction comes through about the semi thanks so much -- -- you're welcome.
