"I've been telling people to take profits in that one and cycle into ON Semiconductor (ONNN), Cadence Systems (CDNS), Brocade Communications (BRCD) and Broadcom (BRCM)." "Mad Money Lightning Round," 6-16-09

I wish I bought it earlier

But you can also buy the roaring tech components of the materials that the Chinese are buying. Here I am talking about, again, Taiwan Semi (TSM) as well as Analog Devices (ADI) -- not done yet -- and perhaps the most explosive of all, SanDisk (SNDK), which is the quintessential gadget company that has been overlooked for ages.

LEADING THE TECH RALLY WITH 3+% DIVIDEND YIELD

I think we saw, for example, Taiwan Semi (TSM) have a huge move, and that was mucho de-stocking. It was also, and this continues, the Chinese demand, which remains very strong.

"There are tons of real beats out there. I didn't expect Owens-Illinois (OI) to do that well, for certain. ... Dow Chemical (DOW) obviously had a lot of fat. ... Everyone's saying now that April's been pretty darned good. ... Taiwan Semi's (TSM) a monster, and a great play on China." ("Flu Panic Led Shorts to Lean too Far," 4-30-09)

"This one should be doing better, they had a great quarter. I want to be a buyer." ("Mad Money Lightning Round," 4-24-09)

We've seen it going on since the market bottom, the endless driving of tech higher and higher. We get the wireless bottom, thanks Nokia (NOK); the personal computer bottom, thanks Intel (INTC); the gadget bottom, thanks Taiwan Semiconductor (TSM); the TV bottom, thanks Corning (GLW) and Best Buy (BBY); the software bottom, thanks to Oracle (ORCL) buying Sun Microsystems (JAVA) for its software and IBM (IBM) celebrating its software on its quarter; and the dot-com bottom represented by great earnings from Google (GOOG) and decent numbers from rejuvenated management teams at Yahoo! (YHOO) and eBay (EBAY).

China Watch: Tap Into TSM: Stephanie Link, director of research for Action Alerts Plus, brings a new way to play the Chinese government's $40 billion infrastructure plan--Taiwan Semiconductor Manufacturing. Find out how the company outshines its competitors, how you can make money off of it, and why you won't find it in the Action Alerts Plus portfolio.
Click here to watch the video.

From a recent Mad Money show:"No. No. No. and No. I'm not going to recommend that or any of the semiconductors or disk drive makers or flash memory guys."

TSM is a stock which tests one's convictions. Buy because it is value. Sell because there is much pain before the sun comes out. It is a decent house in a miserable neighborhood. Not best of breed, but well run. Profitable in an up swing for the chips. Red headed stepchild when the chips hit the fan.

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