Are Some Semiconductor Networking Stocks Looking Semi-attractive?

Regardless of which candidate wins the electoral fiasco, they are going to have
trouble making much of an impact with the virtual deadlock in the legislative
branch of government. So much for Bush’s $4.6 trillion tax cut plan, which had
many on Wall Street, including Alan Greenspan, nervous. The concern was the cut
could undermine the economy by re-igniting inflation. Likewise, Gore’s more
conservative (strange to call a democratic candidate’s actions conservative)
$500 billion cut will likely disappear as quickly as those millions the two
candidates spent in the past 10-days.

I expect watered down versions of either the Bush or Gore tax-cut plans and the
corresponding smaller spending programs to be more of what Greenspan and the
rest of the Fed would like to see.

The options on fiber optic stocks and the ancillary service stocks for
networking giant Cisco
(
CSCO |
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PowerRating) are among the most active and volatile. PMC
Sierra, Inc.
(
PMCS |
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PowerRating), Broadcom
(
BRCM |
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PowerRating) and Applied Micro
Circuits
(
AMCC |
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PowerRating) continue to slide. The AMCC bear put-spread we spoke of
yesterday is moving nicely, but we thought we’d take a look at PMCS
today.