STmicroelectronics/ERICSSON

PW by STmicro passed relatively unnoticed for ERICB SS. This JV/Co-op is still relatively unknown and ERICB SS should be somewhat weaker on the back of this. True, it was out early friday, but with ERICB SS still in squeeze mode no real dent in the stock price was made. The weekend will give investors time to digest the story and should at least lead to some profit taking. STMicro updated the view given Oct 28th, which mean markets have deterioated rather quick for them. Below you can see parts of the press release.

"The fourth quarter would be below the outlook provided in the Company’s news release dated October 28, 2008. Based on current visibility, the Company now expects fourth quarter revenues to be between approximately $2.2 billion and $2.35 billion, as compared to $2.7 billion reported in the prior quarter, or a sequential change in the range of about -12.8% to -18.4%. The revised revenue outlook is the consequence of a recent slowdown in the billings, recent and substantial changes in customers’ demand and order push-outs for the month of December. This situation reflects the well-known weaknesses in the industry, across most geographies and market segments, and, in particular, in wireless, automotive, and computer peripherals. "