The RF to Light 100 dropped 1.6% last week, YTD +4% at 2208. NASDAQ at 2166, down 1.2%. Comparing stock prices are hard to understand. For example Anadigics (share price $8.04), Hittite (41.56) and Triquint (4.65). Hittite and Triquint MMICs are widely used in military applications. All 3 are pursuing commercial business. Hittite and Triquint report profits, Anadigics does not (Yahoo financial data). When comparing Anadigics and Triquint just based on P/B ratio or revenues or total cash, one would think that the Triquint stock should be at least in the $5.50 to $6.50 range. Making a profit should also add some value to the stock price. When you go by financial strength rating the order would be Hittite, Triquint and Anadigics. Compared by stock value, Hittite's price is extremely high (only exceeded by Ericsson, Stratex and Agere) while Triquint is below medium. FUTURE performance expectations appear to be THE major price driver next to the, equally important, general mood on Wall Street. 2Q06 financials were a huge surprise on the up-side. 3Q will be ending in 3 weeks and analysts appear to become less optimistic to beat past earnings.


In the News: Labor costs rose a revised 4.9% in 2Q06, well above consensus of 3.8%. 1Q06 labor costs were revised up to a remarkable 9.0% from 2.5%. Global equity markets stumbled on fears that the Federal Reserve will raise interest rates again to contain inflation. The ISM-PMI Non-Manufacturing business report increased from 54.8 to 57 in August, the first after a 3-month decline. Crude Oil and Gold prices dropped.

New Highs: BLS, CMCSA, CSCO, RTN, T
New Lows: none

Market oversold indicator: up to 81%
Market overbought indicator: down to 46%

Top 5 - last week: Stratex (9%), ATC (6%), Broadwing (6%), Harmonic (5%), Solectron (3%)
-YTD: Avici (128%), Broadwing (96%), Sirenza (84%), Hittite (83%), ATC (54%)

Bottom 5 - last week: Finisar (-18%), HEI (-13%), Sirenza (-11%), Bookham (-9%), JDSU (-8%)
- YTD: Vitesse (-57%), Bookham (-51%), Powerwave (-44%), Cal. Amp (-41%), HEI (-41%)

by Sectors:
Space & Defense: 0%, YTD +10%
Communic. Services: -1%, YTD +18%
Network Systems: -2%, YTD -10%
RF Semiconductors: -2%, YTD - 1%
RF Components: -2%, YTD +10%
F/O Components: -3%, YTD +14%
Miscell.: -2%, YTD + 3%
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RF to Light 100: -2%, YTD + 4%