RawGreed Requests, UMC or NT?

Posted on November 18, 2005 , filed under Stocks | Print This Post

Sashi G. writes,

I was planning to buy UMC but it looks like appreciation potential is much less than NT in the comparative timeframe. Should I stick to ACLS or buy NT or UMC?

This is an interesting question. I posted my thoughts about ACLS below. If you are talking about long term potential, I believe NT, Nortel Networks Corp. has far greater potential than UMC, United Microelectronics Corp. If you are talking about short term gains, I expect UMC to surpass NT in percentage gain in the next 3-6 months.

My target sell price for UMC is: $3.60 within 3-6 months, $4.50 within 6 months-1 year.
My target sell price for NT is: $5 within 6-12 months, $7-8 within 1-2 years.

Both stocks are selling for about the same price at low $3′s. I am bullish on both UMC and NT.

*Disclaimer: I own 10,000 shares of UMC purchased at $3.20. I own 9000 shares of NT purchased at an average price of $2.58.

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