Gold, TSM and UMC update

Posted on December 14, 2005 , Filed Under Stocks

Gold is down this morning at $511. Investor sentiment seems to be that gold will resume its rise after this pullback. Gold stocks have not dropped to the level of gold trading at $511. TSM, Taiwan Semiconductor Manufacturing Company Limited and UMC, United Microelectronics Corporation are both down at the moment. I would look at this as an opportunity to buy both stocks. Utilization at both semiconductor companies has reached nearly 100%. 2005 4th quarter revenues are set to break record levels. TSM is the worlds largest contract manufacturer of microchips, UMC is the worlds second largest. Both stocks appear to be undervalued. I see a bright outlook for both companies. You can click the predictions link in the main navigation menu to read my price targets and analysis.