09.20.2001
Events present a rare buying opportunity

• It is difficult to imagine events that could depress market sentiment any farther. The probability of more in a series of negative developments is very low. As the US media has over-dramatized the risk of terrorist threats for the average American, confidence and sentiment could improve significantly as business returns to normal. Taiwan will also quickly rebuild following typhoon flooding.

• The Taiwan market and valuations are at ten-year lows. We recommend Buying. Our top picks are TSMC (2330), Compal (2324), Accton (2345), Ambit (2386), UWCCB (2826) and TCC (4901). ACM (2352) and TSMC should be beneficiaries of the pick up in US demand for mobile phones.