Excerpt from The Wall Street Transcript's 4/24/06 roundtable interview with Mark Fitzgerald, Banc of America Senior Research Analyst:
TWST: Mark, are there any names you worry about?
Mr. FitzGerald: If you mean stocks that I think are going to go down, yes. In fact, I think some of the high quality names that haven't really broken here are very vulnerable. I think KLA-Tencor Corp (KLAC) is a great short in the $50 and above range. I think there's just way too much enthusiasm for this stock. It is a high quality stock and I think that's why it's held up in the face of the rest of the group selling off.
I think MKS Instruments, Inc. (MKSI) is a great short here. In the component space, it's up close to its peak for the cycle, yet the stocks of its major customers, Applied Materials, Lam Research, Novellus have already begun to correct. The handwriting's on the wall for MKS Instruments, and I think that's a great short.
I cover the foundry companies as well and Semiconductor Manufacturing International (NYSE: SMI), known as SMIC, is just a broken story. Even at $7 or $8, where it is today, I'd still press my short bet on that. I think it's ultimately going to be a $3-$4 stock.