Despite the significant semiconductor stock move in early 2009, our sector analysis tells us there is more room to go from here in 2010. Specifically, we believe the cautious management tone that kept semiconductor stocks range-bound in recent months has also brought investor expectations to more reasonable levels. Our thesis is supported by various checks indicating end market demand is either healthy or recovering across virtually all key semiconductor end markets (i.e., computing, handsets, communications, automotive, industrial) without even an identifiable area of weakness thus far. We see product cycle opportunities in each end market for 2010, including categories such as smart phones, netbooks/tablets, automotive infotainment and wireless infrastructure to name a few. We believe a second leg of positive semiconductor stock returns can be driven by: 1) visibility into more normalized Y/Y industry growth patterns in 2010, 2) continued supply chain discipline and 3) mid-level valuations that are not ahead of growth expectations.