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-- this rally has conviction to the upside as we see -- a hundred maybe three points for the Dow Jones industrials.
92% of the volume is to the upside here and we've got the -- -- in the NASDAQ.
Following -- a big way on the -- moment.
From cell phones to computers -- plays a critical role in getting the latest electronic gadgets into your hands.
Through process that the company's CEO has compared to quote.
Hi tech spray painting for the chips used in those gadgets.
And at least one Wall Street investment titan is keeping tabs on the firm here's what Delphi management president's got black told -- and you the viewer about novellus just last week.
I'm very -- -- an -- in -- small cap names -- -- people come here they all Intel Microsoft I want here.
Where you've done the research and where these small cap names pop up.
Okay especially in the tech sector.
Obviously you know the big companies like the applied materials of the world but there are smaller companies to compete against -- like -- -- which is about one point nine billion.
I'm just on the basis of its revenue was going to double this year probably be up 12% next year.
The stock is selling -- eight point two times earnings is -- before dollars a share in cash that's that's sort of a medium one.
Well if you have bought novellus when Scott made his call last week you would be reaping the rewards today as shares surge on the company's strong second quarter results.
Up up about 7% at the moment.
And of course some analysts say the upside can only continue but there have been reports say 2011 might be rough sledding joining me now from San Francisco.
Maybe the man who could tell us Rick hill the chairman and CEO of novellus welcome mr.
-- thank you for being here.
Good afternoon -- it's great to be -- well I'll tell you know in the release you said that the quarter was driven mostly by electronics but probably have you.
Live in living color and not all that sort of press release printed page.
What was the one thing Rick can you tell us that really drove your sales this time around because these numbers are very solid.
Well we took note -- money whatsoever about it I'm a hard day and don't plan to go on forward.
The reality is I think what we see is.
Really a strong rebound in and demand driven by the infrastructure driven by public spending.
And driven by the emergence of the Chinese consumer those three things.
They really excite me because they bring us back to the mid ninety's relative to semiconductor demand.
You say the Chinese consumer is this talking if I'm really kind of hearing you correctly are you talking specifically about the the emerging middle class in China and would you argue that.
That was your strongest region or -- Korea or Taiwan or or perhaps South America somewhere looking good for you as well.
Well for our strongest region obviously it's Korea and Taiwan.
But where -- their products are ending up going is really China.
The emerging middle class in China today is really got to be a driving force in this next recovery.
And I expect this recovery you know it -- last multiple years it's a run like we saw on the mid ninety's.
Because you know the Gartner group which which looks -- all of these things and sometimes they're smarter than a lot of us says that 2011.
Might see a pull back do you see that -- it doesn't sound like you do.
I'm pretty optimistic when you look the amount of money that governments are throwing into the economy that money's got to go somewhere.
And if there's any one thing that improves the quality -- life throughout the world its semiconductors.
OK so so when you say government spending it.
Well certainly from a standpoint of other than the US government there's a tremendous amount of money going into.
China to upgrade the infrastructure for the Internet for wireless communications.
Throughout the entire region of China.
That in of itself promises to be a very very big investment opportunity for semiconductors.
In addition the Chinese Government.
By strengthening your -- valuing the IR MB.
Has basically made each Chinese consumer.
Have more money to spend abroad they're they're buying power is much stronger today -- it was just a couple months ago.
I think a combination of these things plus direct stimulus by the Chinese Government into the consumer is aiding them to emerge as a consumer society.
What people -- to understand what your company does because if there is one speck of dust on a semiconductor chip away for its debt it doesn't work.
You do the high tech spray painting that would protect that Wafer or -- That's said you're also in the trenches as a businessman and sometimes it's you folks were we get a better sense of how the economy is doing globally.
Are -- coming back because in 2008 laid off 10% of the workforce -- you cut your own pay.
Well clearly the economy.
The world wide particularly in Asia is coming back and it's coming back very very strongly.
That doesn't mean there aren't -- macroeconomic.
Worries still in the world but we can't run our businesses thinking that tomorrow morning the -- is not gonna rise.
We got to go out there and you know know that things are gonna change there are going to be areas that are going to be hot.
They're going to be areas that are weak -- we got to move the resource is where it's hot.
Take commodity areas where they're -- that's what we've been doing.
-- -- finish quickly is Europe the weak area or you getting decent orders from their especially considering we've got downgrade to Portugal Spain Greece debt in the past.
Well I'm glad you didn't mention Germany because the reality is for semiconductors the strongest place today is Germany and the fact is there's money being spent there and that's good for us.
All this is terrific great to hear from you I want -- -- -- plant I want to show people what you do all put on the white bunny suit because I think it's important as.
To really get into the weeds on these companies so thank you Rick very much.
Any time I give you a personal tour okay we're gonna talk about that now -- Chairman and CEO -- killed by the wake.
His first job in seventh grade.
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